Statoil sees Gas Demand, Prices Increasing

Statoil forecasts a 30 percent gain in global demand by 2030.

Demand for natural gas is growing in all the major European, American and Asian consumer regions,and the market forward curves show rising prices in coming years. according to Rune Bjørnson, executive vice president for Statoil ASA, the second-biggest natural gas supplier to Europe,

Price growth is build in part on expectations that total global demand for gas will increase by about 30% during the next two decades, largely driven by an increased gas demand for electricity generation.

Over 30% of European power capacity is more than 40 years old and needs to be replaced. In Europe alone, which is Statoil’s core market, consumption in the power sector is expected to grow around 20% up to 2030.

According to Bjørnson, gas represents a very competitive option compared to alternative energy sources and gas does not require subsidies.

Gas is also attractive from a climate perspective, with carbon emissions declining up to 70% if an old coal-fired power station is replaced by a modern gas fired power station.

“We’re well positioned,” said Bjørnson. “Prices are relatively high, demand is expected to grow in all markets and we can access several alternative channels when marketing new volumes.”

Source: Statoil