Could coal and gas compete on a global scale?
That was one of the topics of discussion at the International Petroleum (IP) Week in London.
Switching from coal to gas can provide LNG support in Europe, according to Massimo Di Odoardo, Director of European Gas and Power Research at Wood Mackenzie.
He also said low gas prices are “testing the ability and willingness to switch from coal to LNG in Japan and Soth Korea”.
Furthermore, gas demand in China is also growing but Mr Di Odoardo added “competition from coal still remains” in the nation.
That’s why he believes it is “unlikely” for a swich from coal to gas to take place in the the East Asian country.
Anouk Honoré, Senior Research Fellow of the Natural Gas Research Programme at Oxford Institute for Energy Studies added there was a “small decline” in coal demand and a rise in natural gas consumption last year.
She believes the price of coal will remain low until at least 2020 and the cost of gas needs to be further reduced to be able to compete with the increase in the share of renewables.
Ms Honoré insisted natural gas could be part of the majority of the future energy mix compared to coal as it can “fill the gap on capacity”.
Last year the UK Government announced all coal-fired power plants will be closed by 2025 and replaced by gas.