2018 Global Gas Report Published

| USA: Washington DC

2018 World Gas Report CoverSnam, the International Gas Union (IGU) and The Boston Consulting Group (BCG) have released the 2018 Global Gas Report which states more than 90% of global gas’ consumption growth to 2040 will come from cities. Gas for transportation is part of the urban energy mix. The report highlights the key trends in the global natural gas market and examines how these speak to the sector’s future growth prospects. The Report was launched at the World Gas Conference in Washington D.C.

In this second edition, the report considers how 2017 was an impressive year for gas demand growth, supported by increased LNG market liquidity and the growing role that gas is playing to meet more sustainable energy supply. To continue this growth trajectory, the report calls on industry and policymakers to cooperate on ensuring the competitiveness, availability and sustainability of gas, and to focus on the special role that gas can play in cities.

The Report observes:

  • Gas consumption is widely projected to grow in the long run under virtually all major scenarios (including the most aggressive low-carbon transition scenarios).
  • Prominent forecasts also project gas to overtake coal as the second leading source of global energy consumption by 2035, behind oil.
  • Reducing emissions through the gas supply chain will be critical in OECD markets in particular as more aggressive climate targets are implemented.

This year’s report includes a special feature on the role and opportunities for gas in cities, given it provides specific advantages for air pollution, GHG emissions, heat intensity and scalability. More than 90% of projected global gas consumption growth to 2040 is likely to come from cities. This will require significant infrastructure investment in developing countries, estimated between $35-55 billion per year according to the report. The report calls for collaboration and conversation across the entire gas value chain, policymakers, and other key stakeholders, to properly recognize and address the opportunities – and challenges – facing the industry.

Growth in Gas for Transportation

“The transport sector in North America and Global marine bunkering […] offer high growth opportunities,” the Executive Summary states. Bunkering is discussed in Chapter 3 where the stimulation from IMO regulations is acknowledged: “To date, LNG adoption by ship operators has been limited with approximately 200 LNG-powered vessels operational (excluding LNG tankers), but that is expected to rise post-2020 given the low sulphur emissions of gas.”

The fight to reduce air pollution is driving the transition to natural gas, in cities, regions and countries. “In China and India, for example, gas consumption in transport is rapidly growing given public programs to incentivize and fuel switching as a means of improving air quality.”

The Report also finds: “Gas consumption of cars [is] targeted to more than double from 2014 to 2020”. (Pg 39)

The 2018 Global Gas Report is downloadable from the SNAM website.

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Sources: IGU and SNAM

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