Global consumption of natural gas, paced by “huge growth” in China, rose last year at more than twice the average rate of the previous 5 years, reported Cedigaz, the International Association of Natural Gas, Paris.
Gas demand worldwide grew by 3.3% in 2017, compared with an average 1.5%/year over the previous 5 years, according to the association’s First Estimates 2017 report. Demand reached a record-high 3,640 billion cu m (bcm).
Chinese demand growth represented “the biggest story of the gas markets in 2017,” Cedigaz said. Gas use in China rose 15%, or 30 bcm.
Gas demand was up 4.8% in the Middle East, 6.7% in Africa, and 4.8% in Europe, including Turkey. Consumption resumed growth last year in the Commonwealth of Independent States on the strength of heating requirements and a resumption of industrial activity.
Global supply, according to Cedigaz, increased 3.7% last year, compared with the prior 5-year average of 1.3%/year.
Supply growth was above average in the CIS (6.8%), Asia-Oceania (4.1%), and Africa (8.6%).
The CIS accounted for more than 40% of volumetric supply growth in 2017, followed by the Middle East at 20%.
Russian supply rose by 8.3%, or 50 bcm, last year. Among other strong volumetric gains were those in Iran, 17 bcm; Australia, 13 bcm; China, 11 bcm; and Egypt and Norway, 10 bcm each.
International gas trade, net of LNG reexports, increased by 9.1% to a record-high 1,204 bcm, Cedigaz reported, pushed by growing needs in Europe and Asia.
Pipeline trade grew by 8.5%. LNG flows were up 10.5%.
Europe accounted for most of the increase in pipeline trade. Most of the increase in European gas imports was covered by pipeline gas from Russia and Norway, both up 11% to record-high levels.
Global LNG supply grew to 382 bcm last year, as production from the US supplemented increasing supply from Australia.
The Pacific Basin remained the largest supply source, but the Atlantic Basin increased its share of the global LNG market.
“In contrast with market expectations of a supply glut starting in 2017, the year turned out to be a relatively balanced year for the LNG market,” Cedigaz said.
China replaced the US as the world’s third-largest natural gas importer after Germany and Japan.
“With the surge of LNG supply and the growing share of spot trades, the gas market is becoming more global,” Cedigaz said.