Nov 12, 2025
Investors are returning to natural gas as demand increases significantly.
Natural gas has faced a tumultuous journey, shifting from being a crucial transitional fuel to being regarded as more polluting than coal. Recent EU legislation poses risks that could leave natural gas sidelined, yet investors are rediscovering their interest in gas investments.
In his final year, President Biden placed a moratorium on new LNG export capacities based on a study suggesting LNG emits more than coal. This was likely intended to deter investment in gas, but it failed. Global natural gas demand continues to grow despite the rise of alternative energy.
Earlier this year, Infrastructure Investor noted a return of investors to natural gas, previously focused on wind and solar, recognizing the ongoing need for hydrocarbons alongside new energy sources. Eric Nuttall from Ninepoint Partners recently emphasized that this trend is gaining momentum, citing strong demand and challenges in increasing supply.
Investment patterns reflect a reality that contradicts claims of natural gas being worse than coal. Natural gas burns cleaner, is affordable, and can support stable energy generation in the face of increasing electricity demand from tech industries.
Consequently, major oil companies are shifting focus towards natural gas while still engaging in oil. Shell has prioritized LNG for the next decade, while BP is planning for growth in both oil and gas. Exxon has warned the EU about suspending natural gas sales unless stringent emission tracking legislation is canceled, highlighting their strong negotiating position amid record LNG imports by the EU.
Woodside Energy expects a 50% increase in crude oil and natural gas sales by 2032 due to rising energy demand, while TotalEnergies has resumed a significant LNG project in Mozambique despite security concerns. In summary, natural gas has made a strong comeback as energy needs rise, revealing the limitations of relying solely on weather-dependent renewable sources.
In his final year, President Biden placed a moratorium on new LNG export capacities based on a study suggesting LNG emits more than coal. This was likely intended to deter investment in gas, but it failed. Global natural gas demand continues to grow despite the rise of alternative energy.
Earlier this year, Infrastructure Investor noted a return of investors to natural gas, previously focused on wind and solar, recognizing the ongoing need for hydrocarbons alongside new energy sources. Eric Nuttall from Ninepoint Partners recently emphasized that this trend is gaining momentum, citing strong demand and challenges in increasing supply.
Investment patterns reflect a reality that contradicts claims of natural gas being worse than coal. Natural gas burns cleaner, is affordable, and can support stable energy generation in the face of increasing electricity demand from tech industries.
Consequently, major oil companies are shifting focus towards natural gas while still engaging in oil. Shell has prioritized LNG for the next decade, while BP is planning for growth in both oil and gas. Exxon has warned the EU about suspending natural gas sales unless stringent emission tracking legislation is canceled, highlighting their strong negotiating position amid record LNG imports by the EU.
Woodside Energy expects a 50% increase in crude oil and natural gas sales by 2032 due to rising energy demand, while TotalEnergies has resumed a significant LNG project in Mozambique despite security concerns. In summary, natural gas has made a strong comeback as energy needs rise, revealing the limitations of relying solely on weather-dependent renewable sources.