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Is gen AI key to unlocking natural gas’s full potential?
3-MINUTE READ
March 12, 2025
BLOG
3-MINUTE READ
March 12, 2025
The global demand for energy is projected to increase by around 20% by 20501, with the world’s population expected to rise to 9.8 billion2. Meanwhile, energy poverty persists, with 1.2 billion people still lacking access to basic energy services3, underscoring the need for equitable and affordable energy solutions.
Coupled with the urgent need to transition to cleaner fuels to combat climate change, these factors contribute to the “energy trilemma”—balancing affordability, security and sustainability—putting immense pressure on existing energy systems and influencing how future transitions are shaped.
Natural gas stands out as the most important bridge fuel to address the energy trilemma, aiding the transition. And when coupled with advanced technologies such as generative AI, natural gas has the potential to be a cornerstone of a sustainable energy future.
There is a significant risk of under optimizing the role of gas. The discussion of peak oil and gas combined with the lack of a compelling narrative that resonates beyond the industry risks unintentionally creating a self-fulfilling scenario. Making only short-term investments in gas and perceiving it as an energy without a long-term future could result in lower availability and competitiveness of gas, right at the moment it is needed the most.
Natural gas plays a critical role in our existing energy system, enabling grid stability and reliability while being a cleaner fossil fuel than coal and oil. It releases about half the carbon dioxide of coal, and it has the energy density needed by intense industrial heat and power.
In Asia, emerging economies like China and India are driving a surge in demand for liquefied natural gas (LNG) to meet their increasing energy needs. The geopolitical dynamics in the Russia-Ukraine conflict revealed the vulnerabilities of over-reliance on a single energy supplier, prompting Europe to diversify its energy sources. These transitions underscore the strategic importance of natural gas beyond environmental benefits, in offering energy security and resilience.
As a dispatchable energy, it offers flexibility unmatched by intermittent renewable sources like wind and solar to fully meet variable energy demand. Wind and solar have increased capacity rapidly, experiencing a 31% increase in capacity in 20234. However, in most geographies and applications, they remain limited by their intermittency and must be married with energy storage and other complementary solutions. Coupling natural gas with renewables can ensure both scalability and stability enabling multiple energies to perform as a system.
The potential of natural gas in the energy transition does not end there. When further integrated with other emerging technologies, such as hydrogen blending, carbon capture and storage (CCS) and advanced methane detection systems, natural gas plays a role as fully net zero energy.
In California, for instance, the integration of natural gas with solar power has helped stabilize the grid during peak demand periods 5. These technologies, combined with AI-driven optimization, ensure that natural gas can support the growth of renewables while maintaining grid stability and reducing environmental impact.
Natural gas has the potential to lower the total cost of the energy transition, while increasing momentum. But, as with any single energy type, is not without its challenges:
Environmental impact: Methane emissions remain a critical yet addressable issue, necessitating widespread adoption of advanced detection and remediation technologies alongside the roll out of methane-proofed equipment and a comprehensive intelligence platform to optimize methane management.
Affordability and access: Although energy costs have been declining in many parts of the world, millions of people—especially in the Global South—still face energy poverty. Despite these cost reductions, gas prices remain high globally, varying significantly based on factors such as a market’s proximity to the source, the transportation infrastructure and especially whether gas is transported in the form of LNG.
Energy security and reliability: Gas availability, and hence the security of supply for many markets is dependent on available pipeline infrastructure. As major drivers of economic activity, access to these pipelines and the availability of molecules has been threatened and even turned off. There are multiple geopolitical hot spots across the energy system and gas is at the center of several of the most critical.
Policy and perception: Natural gas is a fossil fuel, and as such has been grouped alongside more emissive hydrocarbons in both public and policy discussion forums. Clear policies and public communication are crucial to reshaping its narrative. Scaling innovative technologies like CCS and hydrogen blending require significant public and private-sector funding.
Need for innovation: Gas centric clean technologies are at differing levels of technology and commercial readiness. Scaling the integration of clean technologies and AI solutions requires significant investment in innovation. Governments and private sectors must collaborate to fund research and drive innovation in areas like methane detection, hydrogen blending and grid optimization.
Artificial intelligence is emerging as a transformative force in the energy sector, unlocking efficiencies and enabling sustainability gains that were previously unattainable. Optimal integration of AI-powered processes will strengthen the path for gas as a cost-effective bridge fuel. Accenture analysis projects energy-sector spending on gen AI to grow 3.5x by 20306, redefining 44% of industry tasks7.
The priority areas to apply AI to gas in the energy system includes:
Optimizing supply chains: The natural gas supply chain—from extraction to transportation and distribution—is highly complex. AI-powered predictive analytics streamline these processes, ensuring efficient resource allocation, minimizing waste and reducing costs. By automating inventory management, AI also mitigates risks associated with overproduction or shortages in dynamic markets.
Enhancing asset and infrastructure maintenance: AI-powered predictive maintenance is transforming asset management in the natural gas sector. By continuously monitoring infrastructure like pipelines and LNG terminals in real time, AI systems can detect and address potential failures before they happen. This proactive approach minimizes expensive downtime, enhances energy security and guarantees a reliable energy supply. Gen AI has the potential to reduce maintenance costs by 20-30%8, significantly improving operational efficiency.
Reducing methane emissions: Methane emissions present a significant challenge for the natural gas industry. AI-driven detection systems leverage advanced sensors to pinpoint leaks with exceptional precision, facilitating swift remediation. Gen AI enhances these efforts by simulating emissions scenarios, enabling operators to optimize processes and reduce environmental impact.
Advancing carbon capture technologies: CCS is a cornerstone of making natural gas a sustainable energy source. AI accelerates innovation in this field by analyzing thousands of potential configurations for capture technologies, identifying the most cost-effective solutions. These systems can then be seamlessly integrated with natural gas facilities, optimizing efficiency and reducing costs.
Balancing the energy grid: As renewables continue to complement natural gas, AI plays a critical role in balancing energy flows. Gen AI models predict renewable energy generation patterns based on weather data and adjust natural gas output accordingly. This ensures grid stability, avoids inefficiencies and minimizes the risk of blackout, optimizing the system for renewable, gas and storage solutions.
Strategic decision-making: At the leadership level, AI and gen AI provide actionable insights into market trends, geopolitical risks and consumer behaviors. This empowers energy leaders to make data-driven decisions that align with business objectives and sustainability goals.
This is a moment that demands bold leadership. Industry executives, policymakers and innovators need to embrace this convergence of energy and technology to drive meaningful, scalable progress. The stakes could not be higher.
To maximize the potential of natural gas and AI in the energy transition, industry leaders need to adopt forward-thinking strategies, such as:
Reframe the narrative: To shift public perception, leaders must reframe the narrative, positioning natural gas as a vital enabler of emissions reduction and renewable integration. At the same time, it is essential to tailor strategies by addressing diverse energy needs —emphasizing affordability and access in developing nations while prioritizing emissions reductions and seamless renewable adoption in industrialized markets.
Build a robust digital core: The future of methane and emissions management is through insight led, efficient and effective management of the energy system. For leaders, this means building a robust digital core with a strong data foundation to enable AI-powered decision-making and innovation.
Invest in workforce capabilities and change management: Ensuring the right capabilities to effectively leverage and harness the power of AI is critical to scaling value from AI. Upskilling talent and fostering a culture of adaptability can ensure the workforce is prepared to embrace new technologies and processes.
Collaborate across sectors: Partner with governments, environmental organizations and technology providers to overcome regulatory challenges and accelerate industry-wide innovation.
Natural gas has every opportunity to be a core destination fuel as a strategic enabler of a balanced, sustainable and secure energy future. With the capabilities available through the integration of AI and specifically gen AI, its potential is greater than ever. These technologies not only enhance the efficiency and effectiveness of natural gas operations but also position it as a long-term solution to the energy trilemma.
The path forward demands leadership that is bold, innovative and collaborative. By embracing technology, reshaping the narrative and driving investment, we can ensure that the vital role of natural gas in the global energy system is harnessed to its potential.
The stakes are high, but so is the opportunity. It’s time to lead the charge in redefining the role of natural gas as a cornerstone of the future.
Together, we can build an energy system that is affordable, secure and sustainable for generations to come.