The Pitch to De-Commoditize Natural Gas

The Pitch to De-Commoditize Natural Gas

Natural gas is a hydrocarbon energy source with widespread use across the global economy in applications including as fuel used to generate power, a feedstock for chemicals, and a cooking or heating fuel in residential homes. But in 2021, natural gas cannot escape the politics of our times. Is it an abundant, low-cost transition fuel enabling the world’s population to have reliable access to the standards of modern life while displacing more harmful fuels or is it a villain in disguise that perpetuates all the worst traits of the status quo?

Companies with established businesses producing or consuming natural gas are on the receiving end of inquiries about their future plans. Some companies are advocating for the benefits of natural gas while also setting the stage to de-commoditize it by creating new categories that might either command a higher price or meet environmental, social, and governance (ESG) standards, which ensure a long-term source of demand. Here we will review some of the avenues being explored to de-commoditize natural gas.