Analysis - Page 10

2014: A SECOND YEAR OF MODERATE GROWTH OF GLOBAL GAS ACTIVITY

Posted in Analysis, Natural Gas Market, Natural Gas Statistics, Press release on

2014 has been a very mixed year for natural gas, according to the First Estimates 2014 released by the International Association CEDIGAZ today. For the second consecutive year, gas demand slowed down in 2014, with subdued activity in the global gas industry at all stages of the chain.

Top1 consumming countriesGlobal natural gas consumption (including storage variations) was sluggish in 2014 and remained at a quite similar level than in 2013. This can be explained by increased competition between energies, especially coal, the economic slowdown (Europe, China, Russia…), geopolitical turmoil (Russia-Ukraine conflict) and the mild weather conditions which negatively impacted the expansion of gas demand (Europe, Asia). The global consumption trend showed regional disparities. Natural gas demand in North America and the Middle East continued to register strong expansion, but the growth in Asia slowed down, while consumption in the Commonwealth of Independent States (CIS) and Europe declined dramatically. Plummeting consumption in Europe (- 10%) in particular weighed significantly on the overall trend.

Shell’s acquisition of BG: the global LNG leader cannot do without internal growth

Posted in Analysis, Natural Gas Market on

In 2014, the purchase of Repsol’s LNG assets in Peru and Trinidad and Tobago brought Shell an additional 4.3 mmtpa in liquefaction capacity and strengthened its global leadership in the LNG upstream sector. With the $70 billion takeover of BG, the Anglo-Dutch major is about to become the unquestionable leader, thanks to the world’s largest and most diverse portfolio. BG’s contracts will provide the company with an unprecedented coverage of global markets, but Shell has to keep developing LNG projects, as the medium- and long-term production of BG’s assets is uncertain.

Russian Gas Market: Entering New Era

Posted in Analysis, CEDIGAZ Insights, Country Report on

After a period of extensive growth in the 2000s, the Russian gas industry is now facing numerous challenges. Mounting competition by independent producers and the development of new production by Gazprom, combined with stagnating domestic demand and weakening export markets, have created a situation of overproduction, made worse by western sanctions and low oil and gas prices. Expansion to the East thanks to the recent China deal is not expected to provide much relief before 2024. The coming decade will be critical for the industry and its outcome will largely depend on the government’s pricing and institutional policies but the role of the state should remain essential.

The New CEDIGAZ report “Russian Gas Market: Entering New Era” by Tatiana Mitrova (Russian Academy of Sciences) and Gergely Molnar analyses the ongoing changes in the Russian industry and the challenges to be met.