CEDIGAZ, the International Information Center on Natural Gas, has just released its « Medium and Long Term Natural Gas Outlook 2019 ». Cedigaz Scenario incorporates government ambitions in the context of the energy transition that is underway. It is built upon the implementation of strong energy efficiency programmes and increased diversification of the energy mix based on the NDCs. Cedigaz Outlook 2019 highlights that natural gas has a crucial role to play to support the energy transition and meet all targets of the NDCs. However, this will not be enough to reach the +2°C target: emissions in the Cedigaz scenario would put the world closer to a +3°C path. The future expansion of natural gas in the energy mix is driven by the competitiveness and abundance of gas resources in gas-rich markets (North America, Russia, Middle East, Mozambique), which will expand LNG export capabilities. Positive developments of unconventional gas, especially in the US, and liquefied natural gas markets will continue to reshape natural gas supplies.
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THE GLOBAL GAS MARKET IN 2018
Natural gas supply and demand grew at their fastest pace since 2010
According to CEDIGAZ report “The Global Gas Market – 2019 Edition”, 2018 has been a remarkable year for the global natural gas market.
Global natural gas demand surged 4.7% to 3850 bcm, driven by the US and China. The US was the standout performer, accounting for 45% of the global increase in both the consumption and supply of natural gas.
2018 marks the second year of strong growth of natural gas demand, after a 3.5 % rise in 2017. It also recorded the highest growth of gas demand since the post-crisis rebound of 2010.
This fast expansion was driven by the abundance of competitive gas supply, especially in the US and in Russia and by supportive energy and environmental policies, in some countries, particularly in China. Investment in transport infrastructure also contributed to bolster gas penetration in key markets.
China became the largest net importer of natural gas in the world before Japan. Chinese net imports jumped by 32% and accounted more than 80% of the global increase in net imports, once again highlighting the crucial role of China in absorbing global gas production.
Like in 2017, the expansion of natural gas demand was part of a substantial global growth in world energy demand, driven by a robust global economy and extreme weather conditions.
Strong gas demand growth in Asia contributed to a rise in market prices in key areas and prevented the formation of a global LNG bubble.
Global biomethane market: green gas goes global
CEDIGAZ launches new report and database
The biomethane sector is booming worldwide. There will soon be more than 1,000 biomethane production plants operating in thirty-four countries, up from 720 at year-end 2017. Long centered in Europe, the green gas sector is indisputably going global.
Since 2010, world biomethane production has increased exponentially, reaching three billion cubic meters in 2017. In Europe, biomethane use is spreading across the continent. There are now nineteen European producing countries, whose output totalled nearly 2 bcm in 2017. The United States is now world leader for the use of biomethane as vehicle fuel, further to its production surge of 2014-2017 and driven by federal and state regulations. The fact that China and India have recently adopted biogas upgrading technology promises to be a game changer. Both countries have set ambitious biomethane production targets and figure as huge emerging markets. In Central and South America, Brazil is taking regulatory steps to exploit its huge potential.
Despite a flurry of projects and rising interest among governments and industry players worldwide, data on this sector are comparatively scarce and sources of information – national, regional or sectoral – are highly dispersed. To fill this void, CEDIGAZ, the International Centre on Natural Gas Information, is launching a new report and database focused on global biomethane markets and production plants. These are valuable tools for policy makers, energy companies, equipment providers or any entity or individual following this rapidly expanding market.