World Bulletin/News Desk
The slowdown of global economic growth and the increasing reliance on coal and renewable energy sources, has hampered global natural gas demand, International Energy agency reports show.
According to the International Energy Agency (IEA), global natural gas demand has increased by only 1.2 percent in 2013, totaling 3.5 trillion cubic meters.
Global natural gas demand will rise by an average of 2.2 percent every year the reports reveal, meaning that global natural gas demand will reach 4 trillion cubic meters by 2019. These estimates are 0.2 percent lower then last years’ predictions.
The increase in gas demand has been less then the demand for oil, coal and renewable energy sources, which was 1.4 percent, 4 percent and 5 percent respectively.
The reports also indicate that 84 percent of global gas demand will be for power generation and from industrial sectors.
Despite the vast global gas reserves and the fact that it is a clean energy source, a lack of a proper pricing mechanism and its high cost makes natural gas unfavorable in relation to other sources.
Non-OECD countries will make up for most of the increase in global gas demand. The reports also underline that there are still 100 million people in Africa and in some Asian countries that are without access to a modern energy source such as natural gas.
Middle Eastern countries will not be able to transfer power production from oil to gas in the long term, due to insufficient local gas production and high costs of liquefied natural gas (LNG), the reports said.
Last Mod: 13 Haziran 2014, 13:08