Gas Striving to Expand Market Share

Gas Striving to Expand Market ShareGas Striving to Expand Market Share

launched on 4 June at the World Gas Congress in Paris, The Medium-Term Gas Market Report provided a detailed analysis of global demand, supply and trade developments through 2020, upstream investment and trade developments for the following five years that will shape the gas industry and the role of gas in the global energy system, International Energy Agency reported.

According to the report, global natural gas demand remained weak in 2014, falling well below its ten-year average. High prices for gas in the past two years undermined its competitiveness, bringing to light a harsh reality: in a world of cheap coal and falling costs for renewables, gas has labored to compete. Although Asia has been regarded as an engine of future gas demand growth, the fuel has struggled to expand its share of the market in many parts of the region. This has raised questions over the viability of gas as an attractive strategic option across Asia.

The context for gas markets is changing rapidly, however. Falling oil prices have resulted in much lower gas prices in many parts of the word. As a result, gas demand is enjoying the tailwind of substantial price drops while the upstream sector is suffering amid large capital expenditure cuts. The impact on global gas markets of Russia’s strategic shift in its gas export policy and the rising tide of liquefied natural gas supplies are given careful consideration. Two special insights also feature in this report. The first analyses the progress Europe has made in strengthening its gas infrastructure since 2010 and the major bottlenecks that still remain in enhancing the security of supply in the region. The second takes a close look at reforms to the gas and electricity sector in Mexico, investigating their impacts on North American gas markets.