IEA predicts natural gas boom in China

• 9 years ago (2014-06-10)
• Junior Isles

Asia 849

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The IEA has projected a near doubling of Chinese gas demand through to 2019 in its 2014 Medium-Term Gas Market Report released this week, as the gas golden age being experienced in North America shifts to the Far East.

The report’s analysis and five-year projections of natural gas demand, supply and trade developments predicts global demand rising by 2.2 per cent per year by 2019, down slightly on the 2.4 percent rate projected in 2013’s Five-year outlook.

Liquefied natural gas (LNG) is predicted to meet much of this demand along with new pipelines playing a role. By 2019, half of all new LNG exports will originate from Australia, while North America will account for around 8 per cent of the global LNG trade.

"We are entering the age of much more efficient natural gas markets, with additional benefits for energy security," IEA Executive Director Maria van der Hoeven said, presenting the report at the Conference of Montreal.

"While demand growth is driven by the Asia-Pacific region – and especially China – supply growth for the international gas trade is dominated by private investments in LNG in Australia and North America."

Air quality concerns are prompting the Chinese government to adopt tough plans to reduce pollution, and gas looks to be a key part of their solution. Overall Chinese gas demand is predicted to rise 90 per cent to 315 bcm in 2019, the report states, while domestic Chinese gas production is set to grow by 65 per cent, from 117 bcm in 2013 to 193 bcm in 2019.