Hydrogen will, in the future, be a suitable substitute for natural gas to support decarbonisation, says South African Oil and Gas Alliance (Saoga) Gas Economy Leadership Group chairperson Craig Morkel.
However, the development of the hydrogen industry first requires that a gas market be developed.
“The best way to do this is to first use imported liquefied natural gas (LNG) before transitioning to local and regional natural gas and finally hydrogen,” says Morkel.
The upstream industry is unlikely to invest in either the necessary exploration for gas, the development of the local natural gas industry or the development of the hydrogen industry unless there is a convincing, existing market for gas.
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