Platts: Global gas demand to grow by 2.7%/year to 2017: IEA

Global demand for natural gas will rise a faster-than-expected 2.7% annually through 2017 to 3.94 trillion cubic meters, with China and the US leading growth as both countries switch from coal to gas to generate electricity, the International Energy Agency said Tuesday.

Over the five year-period, gas demand will grow 17%, or 576 billion cu m, equivalent to around 90% of Russia's current gas production, according to the IEA's new medium-term outlook for gas markets.

The new higher gas demand growth estimate is up from the 2.4% annual growth rate from 2010 to 2016 IEA predicted last year, reflecting mostly the continued surge in shale gas output from the US.

China remains the fastest-growing market and its consumption is expected to double to 273 billion cu m in 2017 from 130 billion cu m in 2011, representing an average growth rate of 13% per year.  MORE