Global Gas Consumption Hits New Record in 2018
Global natural gas consumption hit a new record in 2018 as it grew at the fastest rate in nine years, according to estimates announced by the International Information Center on Natural Gas (Cedigaz) May 13.
Global gas consumption is estimated to have increased by 4.7% year on year to 3,850bn m3 last year, the quickest growth since 2010, when demand rebounded after the financial crisis. The data suggests 2018 marked a second consecutive year of strong growth for natural gas demand, after an increase of 3.5% in 2017.
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The gains are being driven by a combination of economic growth, growing energy demand, improving infrastructure and weather-related energy needs. Natural gas was the fastest-growing fossil fuel over the past two years, and increased its share in the global energy mix to the detriment of coal.
The US and China were the two main contributors to the increase in consumption. US demand added 80bn m3, with the rise linked to cold winter weather and a hot summer. Chinese consumption rose by more than 17%. Natural gas consumption was also well above-average in Russia and the Middle East.
Global production rose 4.9% to an all-time high of 3,857bn m3. US output grew 11.5%, accounting for almost half of the global increase, followed by the Middle East and Russia, where gas production reached historic highs. At -5.2%, Europe was the only region that saw substantial reduction in output.
In line with growing production, international trade (net flows) has also experienced robust growth, rising 3.7% to 973bn m3, against the background of increased global LNG export capacity. China absorbed over 80% of the global increase in imports, becoming the leading net natural gas importer ahead of Japan.
The expansion of the international trade mainly came from net inter-regional flows (long-distance transportation to accommodate market needs in Europe and Asia), which jumped 11% to almost 500bn m3. LNG trade flows rose 8.7% to 415bn m3, although that was slower than the 10.5% gain in 2017. The growth of international pipeline trade slowed after two buoyant years in response to reduced European gas needs and also smaller exchanges between Canada and the US. International pipeline trade (net flows) grew at a modest rate of 0.3% to 572bn m3
Natural gas prices rebounded in key markets thanks to the strong growth in demand. However, the LNG market loosened in the final quarter of 2018 as a supply surplus met disappointing Asian demand.
