Latest News In Energy Transition - Natural Gas Crucial Bridge In Global Energy Shift

The latest report from Wood Mackenzie emphasizes the integral role of natural gas in the global energy transition, highlighting its support for renewable energy expansion and its potential to reduce dependence on coal. Despite natural gas accounting for nearly a quarter of the world’s energy needs and offering lower emissions compared to coal and oil, challenges such as high LNG prices and the necessity for carbon pricing in Asia impede broader adoption. The report underlines that natural gas, particularly LNG, remains crucial as a transitional energy source in reducing global carbon emissions, acting as a bridge until emerging low-carbon technologies gain prevalence.

In other trading, APA Group (ASX:APA) was a standout up 8.1% and closing at A$7.70. This week, APA announced a major five-year expansion plan to increase gas transport capacity and storage, promising significant infrastructure investments and potential earnings growth from its core transmission business. In the meantime, Barito Renewables Energy (IDX:BREN) lagged, down 8.7% to finish the session at IDR6,300.00.

APA Group aims to drive revenue growth through strategic technology investments and project expansions. Click through to read the in-depth narrative on APA Group.

Additionally, consider revisiting our Market Insights article titled "Oil & Gas: Near-Term Volatility vs Long-Term Trends," where we explored the pressing uncertainties and potential outlook for the oil and gas sector amidst the broader context of the energy transition, highlighting the industry's challenges and the strategic positioning of major players as they navigate the shift towards a low-carbon future.

Best Energy Transition Stocks

• Applied Materials (NasdaqGS:AMAT) ended the day at $168.57 down 2%.
• Tesla (NasdaqGS:TSLA) settled at $330.53 down 2.2%.
• Vistra (NYSE:VST) finished trading at $142.76 down 5.1%.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "Natural gas remains the crucial bridge in the energy transition, yet challenges persist" from Wood Mackenzie on GlobeNewswire (published 20 February 2025)

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