Primer - The Use of Gas for Energy in Low- and Middle-

Primer The Use of Gas for Energy in Low- and Middle- Income Countries TENGI GEORGE-IKOLI AND AARON SAYNE MAY 2024 Primer: The Use of Gas for Energy in Low- and Middle-Income Countries 2 Using this primer, you will explore questions including: Q1 What are the main risks a country could face if it over-invests in domestic gas? Should countries use gas as a “transition Q2 fuel” to renewables, or shou. [...] Foreign investors meanwhile are showing less interest in Governments in around two dozen countries domestic gas projects, and wealthy nations in in Africa, Asia and Latin America want North America and the European Union have to build new pipelines, plants and other pressured the development banks they own infrastructure to use some or all their gas and influence to stop funding gas. [...] Primer: The Use of Gas for Energy in Low- and Middle-Income Countries 5 Questions and answers Question What are the main risks a country 1 could face if it over-invests in domestic gas? The size and nature of the risks depend partly In general, though, new investments in on how advanced a country’s gas sector is. [...] These include how much extra gas the country will have to produce Wealthier, higher-emitting countries in and/or import; the number of years the North America, Europe and Asia should wind infrastructure involved will run; and how much down their gas use first and fastest. [...] Primer: The Use of Gas for Energy in Low- and Middle-Income Countries 11 Question What options does a country have to 5 pay for its gas plans? There is not nearly enough investment Ultimately, the governments of the gas capital to fund the new gas infrastructure producing countries themselves could be some lower- and middle-income producers forced to provide most of the capital for want to build.