Daniel Case
The country is preparing to outstrip the United States, currently the largest consumer of natural gas, as well as all other countries for the next two decades, according to Bernstein’s report of October 17.
China has been the main driver of the growth in world oil demand for most of the past 20 years.
The boom in gas demand underscores the Chinese authorities' intention to reduce the consumption of more dirty fuels such as coal and oil in an attempt to purify the air in cities suffering from smog. According to the government, demand for natural gas in January-August was 18% higher than a year earlier.
"The gas market in China has entered a new golden age," Bernstein analyst Neil Beveridge wrote in a report, "The growth in 2017 demonstrated a significant improvement compared to 2016, as the government's policy to stimulate the growth in demand for gas begins to yield results."
Consumption is likely to continue to grow over the next few years and will reach 300 billion cubic meters. in 2020 compared with 206 billion c.m. last year, Beveridge noted. According to the forecast, demand can grow to about 600 billion cubic meters by 2040, and then exceed demand in the US between 2040 and 2050, which will make China the world's largest consumer of natural gas.
Demand for gas in Asia will double to 1.2 trillion cubic meters by 2025, predicts Bernstein. Several factors will contribute to this, including economic growth, urbanization, environmental factors and a boom in gas supplies from shale drillers in the United States.
The main risk for future gas demand is the likelihood that renewable energy sources will receive a larger share of the global energy market faster than expected.
As reported earlier, in September China said that it is considering a possibility to phase-out vehicles using traditional fuels. This decision of Beijing will speed up the global transition to electric vehicles.
The Chinese government is working with regulators to determine the deadline for stopping production and sales of cars with internal combustion engines, said Deputy Minister of Industry and Information Technology.
source: bloomberg.com
China has been the main driver of the growth in world oil demand for most of the past 20 years.
The boom in gas demand underscores the Chinese authorities' intention to reduce the consumption of more dirty fuels such as coal and oil in an attempt to purify the air in cities suffering from smog. According to the government, demand for natural gas in January-August was 18% higher than a year earlier.
"The gas market in China has entered a new golden age," Bernstein analyst Neil Beveridge wrote in a report, "The growth in 2017 demonstrated a significant improvement compared to 2016, as the government's policy to stimulate the growth in demand for gas begins to yield results."
Consumption is likely to continue to grow over the next few years and will reach 300 billion cubic meters. in 2020 compared with 206 billion c.m. last year, Beveridge noted. According to the forecast, demand can grow to about 600 billion cubic meters by 2040, and then exceed demand in the US between 2040 and 2050, which will make China the world's largest consumer of natural gas.
Demand for gas in Asia will double to 1.2 trillion cubic meters by 2025, predicts Bernstein. Several factors will contribute to this, including economic growth, urbanization, environmental factors and a boom in gas supplies from shale drillers in the United States.
The main risk for future gas demand is the likelihood that renewable energy sources will receive a larger share of the global energy market faster than expected.
As reported earlier, in September China said that it is considering a possibility to phase-out vehicles using traditional fuels. This decision of Beijing will speed up the global transition to electric vehicles.
The Chinese government is working with regulators to determine the deadline for stopping production and sales of cars with internal combustion engines, said Deputy Minister of Industry and Information Technology.
source: bloomberg.com
