Energy today is headline news, driven by growing demand, tightening supplies, and increasing concerns about the environment, in particular the urgent global challenge of climate change.
In this context, global demand for natural gas has already been growing rapidly; gas demand grew is expected to rise by 1.5% per annum out to 2030 according to the International Energy Agency (IEA). This demand will be driven in large part by rapid growth in developing economies, whose energy requirements are likely to exceed those of the developed world economy within the next five years. In particular, China and India are predicted to account for 45% of new energy demand over the next two decades.
World Primary Energy Demand CAGR 2007-2030
Why is demand for gas growing? It offers a number of important advantages over other fossil fuels:
Natural gas is plentiful. IEA estimates suggest there are nearly 182 trillion cubic meters of proven reserves (1P) of natural gas today; this equates to about 60 years of supply at current reserves to production levels.* But that figure does not include significant gas reserves which experts believe are yet to be discovered.
Natural gas is transportable. Liquefied Natural Gas (LNG) and long distance pipelines have transformed global gas markets and increased the breadth and depth of the global gas trade. LNG has ended the "stranded gas" problem – by which gas could only be accessed by pipeline. Through liquefaction, gas can be transported by ship all over the world to meet demand wherever it arises. In 2009, a total of 183 million tons was delivered to the global market, equivalent to 6% of total gas produced. Forecasts estimate that global LNG demand will rise by more than 50% to 280 million tonnes per annum by 2015, equivalent to 11% of total gas consumption.*
Natural gas is the lowest carbon fossil fuel. Natural gas emits 22% less carbon dioxide than oil and 40% less than coal. Gas also is the most energy efficient fossil fuel – it offers important energy saving benefits when it is used instead of oil or coal. Gas technology and LNG mean that gas can also be delivered and used today into almost any consumer market in the world – gas can fill any energy gap
Interesting links
* Source: IEA