Gas to bridge the gap between fossil fuels and renewables

The following AFR article further justifies gas’ position as a transitional power source:

Read the full article here.

Our key takeaways:

• Russian energy giant Gazprom has reduced gas flows into Europe through the Nord Stream pipeline.
• The EU is encouraging users to burn less natural gas to deal with reduced energy supplies from Russia.
• Germany is looking to restart coal-fired power plants to conserve natural gas consumption.
• There’s a focus on ensuring that more gas is available to divert to storage, so that Germany has enough to get through the winter months.
  

Germany is one of the countries most committed to decarbonising its economy but finds itself reliant on coal-fired power plants for energy supply.

We think this reiterates the need for a transitional energy source to bridge the gap between fossil fuels and renewable energy. Natural gas is an ideal transitional energy source and this is why we hold natural gas exploration exposures in our portfolio.

To check out our Investments in the gas industry see the Investment Memos for the companies below:

Elixir Energy (ASX: EXR)

• Exploration stage, coal bed methane gas, Mongolia

Invictus Energy (ASX: IVZ)

• Exploration stage, gas, Zimbabwe

Top End Energy (ASX: TEE)

• Exploration stage, gas, Northern Territory