Global natural gas demand is set to decrease by nearly 2% this year, led by a disruption in commercial and industrial consumption due to lockdowns, Kallanish Energy learns.
According to Rystad Energy, worldwide gas demand is expected at 3,878 billion cubic meters (Bcm) this year, down from 3,951 Bcm in 2019. Prior to the Covid-19 pandemic, the outlook was for demand to grow to 4,038 Bcm.
The effects of the pandemic on demand vary from country to country, as the lockdown and containment measures differ. But while there have been declines in gas demand in European nations, consumption in the U.S. continues to thrive – mainly led by the power sector.
In fact, low gas prices offer an opportunity for coal-to-gas switching in countries like Australia, Germany, South Korea and the U.S.
“Low prices are shielding gas demand to some extent as the fuel remains more competitive than other sources of energy, especially in the power sector where gas use remains relatively stable in most countries,” Rystad added.
2020 will be the first year since 2009 where there will be no growth in gas demand, in an industry used to annual growth rates of over 3%, the firm said.
This post appeared first on Kallanish Energy News.