IEA: China Natural Gas Demand Will Double by 2019

Europe natural gas demand expected to remain flat.

Jun 10, 2014 at 11:35AM

Chinese demand for gas will nearly double by 2019, according to the International Energy Agency's (IEA) 2014 Medium-Term Gas Market Report released today.

The International Energy Agency is an independent organization conducting global energy data collection and research, and this latest report provides one of the most comprehensive international outlooks on natural gas available. According to the IEA, global demand is expected to increase at an annual rate of around 2.2% for the next half-decade, a dip from last year's projection of a 2.4% rate.

"We are entering the age of much more efficient natural gas markets, with additional benefits for energy security," said IEA Executive Director Maria van der Hoeven in a presentation of the findings. "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 [liquefied natural gas] in Australia and North America."

LNG will play a key role in satisfying the world's new gas demand as private-sector operators in Australia, Canada, and the United States take the lead in the expanding LNG trade, which is expected to grow by 40% by 2019, according to the agency. Australia is expected to account for half of all new LNG exports, with North America snagging about 8% of the global LNG trade by 2019.

The IEA reports that gas is "emerging as a major part of the solution" to China's plans to reduce pollution. "While China will remain a significant importer, half of its new gas demand will be met by domestic resources, most of them unconventional," according to the IEA, which estimates  Chinese production is set to grow by 65% between 2013 and 2019.

The U.S. Energy Information Administration says China’s natural gas demand in 2012 reached 5,180 billion cubic feet, around one-fifth of the United States’ consumption for the same period.

While China demand is expected to jump, a combination of low energy demand growth and a renewables push will keep Europe natural gas consumption below its 2010 peak level, the report estimates. The Middle East will also face issues, but on the production side, as government-regulated prices keep gas too cheap to incentivize upstream investment and "encourage wasteful consumption," the report said. Go to this web page to find links to report summaries. Here is the executive summary (in PDF).

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers