Strong demand growth from China, greater industrial demand, and rising supplies from the US, will transform global natural gas markets over the next five years, said the International Energy Agency in its latest market forecast.
Global gas demand will grow at an average rate of 1.6% a year, reaching just over 4,100 billion cubic meters in 2023, up from 3,740 bcm in 2017, according to the IEA’s latest annual gas market report titled “Gas 2018”, Trade Arabia reported.
“In the next five years, global gas markets are being re-shaped by three major structural shifts,” said Fatih Birol, the IEA executive director.
“China is set to become the world’s largest gas importer within two-to-three years, US production and exports will rise dramatically strongly and industry is replacing power generation as the leading growth sector. While gas has a bright future, the industry faces tough challenges. These include the need for gas prices to remain affordable relative to other fuels in emerging markets and for industry to curb methane leaks along the value chain.”
Chinese gas demand is forecast to grow by 60% between 2017-2023, underpinned by policies aimed at reducing local air pollution by switching from coal to gas.
China alone accounts for 37% of the growth in global demand in the next five years and becomes the largest natural gas importer by 2019, overtaking Japan. The IEA also forecasts strong growth in gas use in other parts of Asia, including in South and Southeast Asia, driven by strong economic growth and efforts to improve air quality.
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