Gas Trade Growth Outstrips Demand Growth: BP

Global primary energy demand grew just 1.3% last year, less than half the previous year's 2.8%, while inter-regional gas trade grew faster than both gas demand and gas production, according to BP's annual Statistical Review of World Energy, published June 17. On the other hand, nuclear, up 3.2%, was the only fuel to grow faster than its ten-year average rate.

Renewable energy and gas met three quarters of the new demand and China accounted for over three quarters of the new demand, with India and Indonesia in second and third places. Germany and the US brought up the rear, with the smallest change year on year.

Natural gas demand rose 78bn m³ or 2%, well below the 5.3% the year before, but still the share of gas in primary energy rose to a record high of 24.2%. The US added 27bn m³ and China 24bn m³, while Russia and Japan saw the largest declines (10bn m³ and 8bn m³).

Gas production grew by 132bn m³ (3.4%), with the US accounting for almost two-thirds of this increase (85bn m³) as its LNG exports added 19bn m³ to the global total. Australia (23bn m³) and China (16bn m³) were also key contributors to growth.

Inter-regional gas trade expanded at a rate of 4.9%, more than double its 10-year average, driven by a record increase in LNG of 54bn m³ (12.7%). Russia added 14bn m³, with most incremental supplies heading to Europe: European LNG imports (+49bn m³) up more than two-thirds.

Oil consumption grew by 0.9mn barrels/day (b/d), led by China (680,000 b/d) and other emerging economies, while demand fell in the OECD (-290,000 b/d). Global oil production fell by 60,000 b/d as strong growth in US output (1.7mn b/d) was more than offset by a decline in Opec production (-2mn b/d)

Coal demand fell 0.6% and its share in primary energy fell to its lowest level in 16 years (27%) as demand and output rises, mainly in China and Indonesia, were offset by a sharp fall in OECD demand, mainly US and Germany.