Global Gas Demand to Rise over Next 5 Years to 4,000 bcm, Says IEA

Natural gas will continue to increase its share of the global energy mix, emerging as a significant transportation fuel despite lower-than-expected growth, the International Energy Agency said in its Medium-Term Gas Market Report (MTGMR) released on Thursday.

The report foresees the total gas demand to rise from 3,427 billion cubic metres (bcm) in 2012 to nearly 4,000 bcm in 2018.

“Gas is already a major fuel in power generation, but the next five years will also see it emerging as a significant transportation fuel, driven by abundant supplies as well as concerns about oil dependency and air pollution. Once the infrastructure barriers are tackled, natural gas has significant potential for clean-energy use in heavy-duty transport where electrification is not possible,” commented IEA Executive Director Maria van der Hoeven.

Growth estimates revised down to 2.4%

The IEA revised its growth estimates from last year's 2.7% to 2.4%, due to the persistent tightness of LNG markets and the difficulties in the upstream activities in the Middle East and Africa.

“The persistent tightness of LNG markets is a major concern as it limits the contribution of gas to sustainable energy security,” said Van der Hoeven.

According to the report, the tightness of LNG supply will help Russia to maintain its premier position in the short-term, while European non-conventional production will be gradual, with little effects in the short-term.

‘Non-conventional production will remain a North American phenomenon in the medium term. The United States alone represents over one-fifth of the global increase in gas production, benefiting from technological developments and cost-efficient field services,’ reads the note released on Thursday.