Cedigaz: Global Gas To Grow in Line with 2016 Trend
Paris-based gas research institute Cedigaz says its Natural Gas in the World 2017 report bears out its initial estimate published early this May that global gas consumption grew by 1.6% in 2016 -- in line with the past five-year average.
Gas in the energy mix has slightly progressed in recent years, against a background of falling coal consumption and rising renewable energy output. A similar growth trend for gas can be expected in the short and medium term too, it said October 27, as the world turns to less pollutive energy forms.
In 2016, Europe contributed for the largest part of the global consumption growth, as EU gas consumption soared 7.4% to 460bn m3, said Cedigaz. Consumption also increased significantly in Asia (+ 17bn m3) and the Middle East (+ 17bn m3), whereas it fell in South/Central America (- 2.4%) and the former Soviet Union (- 1.6%) amid poor economic conditions. China recorded 3% annual growth in 2016 and 2015, added Cedigaz.
Global gas supply edged up 0.2% to 3,502bn m3 in 2016, as marketed production marked an abrupt halt in 2016 after a gradual growth of almost 2%/yr on average over the five previous years. The break was largely due to the US, where gas production fell for the first time since the US shale boom began. Despite this, global unconventional gas production surged 5.3% to 817bn m3, with North America still covering more than 85% of that total.
World gross natural gas production increased at a higher rate than marketed production, up 0.6% to 4384 bcm, with significant increases for re-injected gas (+ 1.2%), flaring/venting (+ 2.2%) and shrinkage (+ 3%), arising from the extraction of liquids, processing and field operations.
International gas trade accelerated in 2016, up 6.2% to 1,107bn m3, with both LNG (+ 6.4%) and pipeline (+ 6.1%) trade higher, the latter including a rise in Russian exports to Europe. International gas prices followed a downtrend, reflecting the increase in available supply.
This summer BP published its Statistical Review of World Energy which said that global gas consumption increased by 1.5% in 2016, while the World Bank released specific data showing a rise in gas flaring in 2016.
Mark Smedley