Gas 2019

Gas Market Report 2019 Analysis and Forecast to 2024

Executive Summary

In 2018, natural gas played a significant role in increasing global energy consumption by 45%, surpassing other fuels. It reduced air pollution and limited energy-related CO2 emissions through displacing coal and oil in various sectors. Despite regional differences, natural gas remains crucial in the global energy mix as a key enabler of the energy transition. However, challenges such as price competitiveness in developing economies, security of supply, and environmental impact remain.

Demand

• Highlights: Global natural gas demand increased significantly in 2018, driven by growing consumption in various sectors.
• Global Overview: Natural gas demand rose by 45% in 2018, accounting for a large portion of the total energy consumption increase.
• Regional Outlook:
  • North America: Abundant and cheap natural gas resources.
  • China: Key contributor to reducing air pollution.
  • Emerging Asia: Main feedstock and fuel for industry.
  • Europe: Challenges posed by renewable energy.
  • Africa and South America: Emerging as a fuel source.

Supply

• Highlights: Global natural gas supply is expected to grow steadily over the forecast period.
• Global Overview: Supply growth is driven by increased production and exploration efforts.
• Regional Supply Outlook:
  • North America: Dominated by shale gas production.
  • China: Increasing domestic production and importation.
  • Emerging Asia: Rapid growth in demand leading to increased imports.
  • Europe: Declining production but increasing imports.
  • Africa and South America: Emerging as new sources of supply.

Trade

• Highlights: Global natural gas trade is expected to expand, with liquefied natural gas (LNG) playing a significant role.
• Global Natural Gas Trade: Increased trade volumes driven by rising demand and improved infrastructure.
• Regional Trade Outlook:
  • North America: Exports to Asia and Europe.
  • China: Increasing imports from various regions.
  • Emerging Asia: Rising imports to meet growing demand.
  • Europe: Imports from North America and Africa.
  • Africa and South America: Emerging as key export regions.
• Global LNG Market: Significant growth in LNG trade, driven by demand from Asia and Europe.

Prices and Market Reforms

• Highlights: Market prices remained stable in 2018-19, with ongoing reforms in regulatory environments.
• Market Prices in 2018-19: Stable prices supported by strong supply and demand dynamics.
• Global Natural Gas Pricing Overview: Diverse pricing mechanisms across different regions.
• Pricing and Market Reforms in Regulated Environments: Ongoing efforts to improve market efficiency and transparency.

Conclusion

Natural gas continues to play a vital role in the global energy landscape, contributing to energy security, clean energy goals, and economic growth. However, challenges related to price competitiveness, supply security, and environmental impact need to be addressed to ensure sustained growth in the sector.