Improvements in energy efficiency and wider deployment of low-carbon technologies could reduce global gas consumption by five per cent by 2015 and 17 per cent by 2030 compared to a business-as-usual scenario, according to new projections from the International Energy Agency (IEA).
The Financial Times reported yesterday that a draft version of the IEA's World Energy Outlook, the flagship annual report due for release next week, shows that the planned rollout of renewable and nuclear energy programmes should begin to significantly eat into demand for natural gas within the next five years.
It predicted that even with the projected economic recovery, European demand for gas will not recover to 2008 levels of 542 billion cubic metres (bcm) until 2020 before then dropping back to 525bcm by 2030.
As a result, gas is likely to become oversupplied and prices are predicted to fall, reducing Europe's reliance on Russia as its major supplier.
In addition, the report said that in the US the identification of large reserves of gas trapped in shale rocks has opened up vast new areas of supply, eradicating the need for liquefied natural gas imports from abroad.
To continue reading, click here
TOP RELATED KEYWORDS