Global Gas Output Surges in 2018: Rystad

Worldwide gas production rose by 164bn m³ last year, the highest production growth since 2010, according to research by Norwegian analysts Rystad Energy January 18. 

“Year-on-year growth was clearly driven by North America, which accounted for 71bn m³, followed by the Middle East with 39bn m³. Europe was the only region that experienced a reduction in 2018,” Rystad Energy partner Espen Erlingsen said. The cuts in the Netherlands will have been a factor.

Rystad Energy forecasts the supply surge will continue in the coming years. The expected average annual growth from 2018 to 2021 is 115bn m³, which would outpace the average annual growth from 2011 to 2017 by 90%.

“Going forward, global growth will be driven primarily by North American gas, which is going through an LNG development phase,” Erlingsen added. Rystad expects US gas production to reach almost trillion m³/yr (94bn ft³/d) by 2025.

The weakest global annual growth was observed in the 2015-2016 cycle, when global gas output grew by only 12bn m³. This was also the only period in which North America experienced a year-on-year reduction in gas production growth.