China and the Middle East, insisted by lower prices and enough supply, will drive global natural gas demand growth in the next 25 years as consumption in Europe fails to recover to peak levels seen in 2010, according to the International Energy Agency (IEA). Both regions will become larger gas users than Europe by 2035, the Paris-based IEA said in its World Energy Outlook 2015.
What World Energy Outlook says??
- Global demand for gas, a cleaner-burning fuel for power generation than coal, will rise 1.4% a year to 5.16 trillion cubic metres (182 trillion cubic feet) in 2040, making it the fastest-growing fossil fuel.
- The agency forecast 1.6% annual growth to 5.38 trillion cubic metres last year.
Changes in Price and Demand:-
- With gas prices already low in North America, and dragged lower elsewhere by ample supply and contractual linkages to oil prices, there is plenty of competitively priced gas seeking buyers in the early part of the Outlook.
- Gas will account for 24% of power generation by 2040, up from 21% in 2013, as the share of dirtier coal falls to 30% from 41%. The fuel is also being used to spare use of oil and back up renewable energy generation.
- US futures, used to price contracts for the first LNG exports from the shale boom, declined 46% over the past year.
- Gas demand in the European members of the Organization for Economic Cooperation and Development will remain little changed at 528 billion cubic metres in 2040, rising 0.1% a year from a forecast for 0.7% annual growth in last year’s report.
- China’s consumption is expected to rise 4.7% annually, the fastest growth among all regions, to 592 billion cubic metres, the report shows.
- The Middle East will expand gas use by 2.1% a year to 738 billion cubic metres.
Try it…
India’s third largest software exporter Wipro’s media and telecom business unit head has put in his papers on November 8, 2015. Name him.
