Investing $2 trillion to convert coal power plants to natural gas could reduce global carbon emissions by 15%, according to Majid Jafar, CEO of Crescent Petroleum. Speaking at the World Energy Capital Assembly in London, Jafar highlighted the pivotal role natural gas plays in ensuring energy security and addressing climate change while facilitating a just energy transition.
Jafar, whose company is the Middle East’s largest private oil and gas producer, emphasized the urgent need for a balanced approach to energy policy, especially in the developing world. “Energy and climate are two sides of the same coin,” he said, warning against neglecting energy access in pursuit of climate goals. He pointed to the final declaration of COP28 in the UAE, which recognized natural gas as a key transition fuel.
The Crescent Petroleum chief stressed that developing nations, home to over 7 billion people, are disproportionately affected by energy poverty. Many rely on dirtier fuels like coal due to limited access to cleaner natural gas. “Eight hundred million people globally still lack electricity, and three billion rely on wood for cooking, harming both health and the environment,” Jafar noted.
The global investment in natural gas production, currently at $250 billion annually, is only half of the $500 billion needed to meet growing demand, he said. Western financial markets have become less supportive of the industry, exacerbating energy poverty in Asia and Africa and driving increased coal usage.
Crescent Petroleum’s Role
Jafar highlighted Crescent Petroleum’s contributions to emission reductions and energy access over the past 15 years. The company’s natural gas production in the Middle East has avoided over 50 million tonnes of CO₂ emissions by replacing diesel with cleaner natural gas for electricity generation. This shift has provided affordable electricity for millions, reduced costs for governments, and boosted GDP in host countries.
The company has also been carbon-neutral since 2021, achieving a carbon intensity of 5.8 kgCO₂e per barrel of oil equivalent—one-third of the global industry average. Crescent Petroleum is a founding signatory of the Oil & Gas Decarbonization Charter, launched at COP28, which aims to accelerate methane emission reductions across the sector.
A Balanced Energy Future
Jafar urged global policymakers to embrace natural gas as a bridge to a sustainable energy future. “By embracing natural gas, we can reduce emissions, improve air quality, and provide reliable energy, enabling renewable sources to grow. This approach ensures a resilient and equitable energy future,” he said.
The World Energy Capital Assembly, attended by hundreds of energy executives and financial leaders, served as a platform for discussing these pressing global energy challenges. The event, organized by the Energy Council, connects energy executives with the investment community to drive the industry’s growth and transformation.
