IEA report examines natural gas demand

A recently released International Energy Agency (IEA) report maintains natural gas demand grew 4.6 percent last year, representing its fastest yearly pace since 2010.

“Natural gas helped to reduce air pollution and limit the rise in energy-related CO2 emissions by displacing coal and oil in power generation, heating, and industrial uses,” IEA Executive Director Fatih Birol said. “Natural gas can contribute to a cleaner global energy system. But it faces its own challenges, including remaining price competitive in emerging markets and reducing methane emissions along the natural gas supply chain.”

The analysis determined global demand for natural gas is slated to continue growing over the next five years, buoyed by strong consumption in fast-growing Asian economies and supported by the continued development of the international gas trade.

China is expected to account for more than 40 percent of global gas demand growth to 2024, spurred by the government’s goal of improving air quality by shifting away from coal, officials said, adding strong growth in gas consumption is anticipated in other Asian countries, particularly in South Asia.

Liquefied natural gas (LNG) at sea is set to emerge as a fast-growing alternative fuel because of stricter rules on sulphur content that take effect in January 2020, the report showed. Supplies to meet growing global demand for natural gas will come from both new domestic production in fast-growing economies, led by the development of abundant shale gas resources in the United States.