Natural gas demand to increase by 60% by 2030

First, countries are diversifying their energy sources by seeking alternatives to oil and coal, and they are switching to cleaner fuels like petrol gas. By 2030, natural gas demand is projected to increase by 60% to overtake coal in the global energy mix, to become the second most dominant source of energy globally.

Second, the emergence of unconventional gas resources such as shale gas in the United States and coal-bed methane in Australia has altered potential future trade flows. Previously a net importer, the US could become an exporter of gas as early as 2015. The US Department of Energy approved exports of natural gas from the US in May this year, while work on liquefaction facilities could begin as early as next year.

Third, the global use of nuclear as an energy source has slowed significantly since Japan was hit by a tsunami and earthquake in March. The meltdown of Fukushima has raised alarm amongst countries that rely on nuclear energy. As more countries like Japan and Germany become cautious of their reliance on nuclear energy, LNG imports are expected to grow.

Most of the future action will be seen in emerging markets. 80% of the growth is expected to be in non-OECD countries by 2035, largely driven by the emerging economies of Asia. China’s demand for natural gas alone is projected to grow more than five times from the current 20billion cubic metres to 110billion cubic metres by 2015. At least half of which will be met by LNG.
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