BGN International accelerates the private sector’s role in decarbonization

Governments and international organizations no longer have sole domain over the direction of the energy transition. Global energy markets and private enterprise are stepping up, deploying innovative investments and expertise to accelerate decarbonization, writes Colin Stevens.

The international community has for years been caught between a rock and a hard place: how to balance the need for reliable power while slashing carbon emissions. If the challenge was simply how to transition away from fossil fuels, the answer may be easy. However, how to go about this change in a way that ensures energy security, economic stability, and affordability for consumers, presents and entirely different issue. While governments set ambitious climate targets, true progress will rest on the actors that have the capacity to take concrete, actionable steps to bridge the gap between aspiration and reality. The private sector is proving to be the most reliable source of such decisive action, reshaping global energy markets to achieve decarbonization targets in an economically responsible way.

Among private energy traders, Dubai-based BGN stands out for its expanding transition fuel operations – it is one of the largest buyers of LPG from the United States and distributes globally. It also actively invests in expanding its LPG network while cutting logistics emissions. Underscoring this point, Rüya Bayegan, CEO of BGN Group stated, "BGN continues to play a key role in delivering LPG and other energy commodities to help satisfy global energy demand". LPG burns cleaner than other alternatives because, unlike coal and oil, it burns far less carbon dioxide while eliminating sulfur oxides (SOx). The question stands though, how can LPG and other transition fuels be supplied fast enough to meet increasing demand in the developing world?

BGN, for example, has been making an aggressive push to supply LPG where it is needed most, with the help of a vast fleet capable of powering its expansive supply chain. It has invested in a series of state-of-the-art Very Large Gas Carriers (VLGCs) with dual-fuel propulsion systems. Independent of their capacity to effectively supply LPG, these vessels also cut emissions significantly, and their design allows for their conversion to ammonia fuel as a zero-carbon alternative. Ammonia has not yet rolled out commercially, but BGN’s investment means that the company will waste no time once the ammonia industry picks up speed. BGN joins a small list of companies proactively reshaping the sector to align with decarbonization goals.

The company is not alone and other key players continue to make efficiency changes to the energy industry. Some examples include, BW LPG, an owner and operator of Very Large Gas Carriers (VLGCs) that has retrofitted its fleet with dual-fuel system. Iberdrola, one of the three largest renewable energy companies in the United States has doubled down on green hydrogen, while Omani OQ has been heavily investing in green ammonia, following the shifting landscape of energy supplies.

Key energy experts support this cleaner shift seen in core private sector players. Fatih Birol, Executive Director of the International Energy Agency, emphasizes LPG’s crucial role in the transition, particularly in regions still struggling with access to clean energy. Gas also has strong potential in other sectors. James Rockall, CEO and Managing Director of the World LPG Association, highlighted that, “The industrial and agricultural sectors can also benefit from transitioning to LPG, achieving carbon emission reductions of 30-40% by using LPG instead of coal and 20% by using LPG instead of oil.” Interestingly, energy majors acknowledge the security and economic dilemma of investing too aggressively in renewables with BP last week announcing it is scaling back renewables operations and increasing investment into gas. Industry leaders see LPG’s role as a practical and relatively immediate solution to emissions challenges. Importantly, the sort of transition fuels that BGN supplies should not be seen as a temporary fix. Rather, these are crucial bridges that will deliver us to a decarbonized future while guaranteeing economic stability or energy security.

From a critical perspective, sceptics postulate that any reliance on fossil fuels, even cleaner ones such as LPG, delays the ‘inevitable’ shift to renewables. Such firm dismissals of transition fuels, however, outright ignore the realities in today’s market. Renewable infrastructure may be growing, but it is far from capable of meeting the full demands of the global economy. Until that is truly possible, energy providers must balance clean fuels with economic and social development. LPG cuts carbon emissions dramatically—at an astounding rate of roughly 50% less than coal and 20% less than heating oil. It is indeed one of the most, if not the most effective bridge solutions available to us. If we wait for a perfect energy future, we will miss out on the benefit of beginning to cut down carbon emissions today, with the technology and energy sources we have available. Alongside plans for a truly net-zero future, we need immediate solutions, and BGN along with other key private sector players are delivering them.

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