Global Gas Demand Up: IEA

Natural gas demand grew by an estimated 4.6% – or 170bn m³ – in 2018, its largest annual increase since 2010 when gas demand bounced back from the global financial crisis, the International Energy Agency reported March 26. This is second consecutive year of strong growth, following a 3% rise in 2017.

The switch from coal to gas was responsible for nearly 40bn m³ of the increase in gas, more than one-fifth of the total extra demand. Of that extra demand, only 18bn m³ went to the power sector, but the IEA did not say where the rest of the new demand came from. The share of gas in power generation hit an all-time record of 34%.

The US had the highest year on year growth rate since the early 1950s, with 10.5% as its liquefaction and export projects came online – a process which has a long way yet to run – while China added 17.7% to its demand. Together they accounted for 70% of the global growth last year.

 Gas in primary energy (bn m³)

Source: IEA

Gas accounted for 23% of total global primary energy demand in 2018, compared with 21% in 2000. The share of gas in global power generation also increased from 18% in 2000 to 23% in last year.

Despite growth in Asia, US and Middle East, especially Egypt – which became self-sufficient in gas supply in late 2018 and launched the world’s largest combined cycle gas-fired power plant, with a capacity of 14.4 GW – Europe’s demand declined after two years of growth. That was partly due to the temperature sensitivity of gas demand, with demand for space heating reduced by a mild fourth quarter.

Additionally, 2018 saw lower gas use for power generation, especially in some of the largest consumers such as Germany, Italy, Spain, Turkey and the UK.

Global renewables grew faster than all energy types, increasing by 7.1% year-on-year to 6,800 TWh.

 Source: IEA statistics

Global Oil and coal demand also increased by 1.3% and 0.7% year-on-year, sharing 31% and 26% of global primary energy demand respectively in 2018.