Global growth in marketed production of natural gas remained low in 2014 as competition from coal in Europe and Asia, the economic slowdown in China, and Northern Hemisphere warmth restrained demand, Cedigaz reports.
Marketed gas production increased 1.3% to 3.445 trillion cu m (tcm) last year after rising 1.2% in 2013, according to revised and final Cedigaz data.
During 2000-10, marketed production grew at a sustained average of about 2.8%/year, including a decline in 2009 offset by an increase related to economic recovery in 2010.
Gross worldwide gas production increased 1.7% to 4.319 tcm last year, the association says. The increase reflects gains of 4.6% in reinjected gas, 2.9% in flared and vented gas, and 2.2% in losses related to processing and field operations.
With demand decreasing in Europe and the Commonwealth of Independent States, international gas trade fell by about 3% to 1.007 tcm last year, Cedigaz says. Pipeline flows fell by 4.3%.
LNG supply increased 0.8% to 312.8 billion cu m after several years of decline as liquefaction outages remained low and plants started up in Papua New Guinea and Algeria.
Gas demand in Asia fell 2.7% in 2014 after increasing by an average 6.5%/year the previous 5 years.
The LNG supply gain and Asian demand slowdown “have led to the emergence of a global LNG glut and the collapse in spot prices in both Europe and Asia,” Cedigaz notes.
Gas reserves increased by 0.3% to about 200 tcm last year, according to the association. Russia and the US had the largest increases, while European reserves fell by almost 7%.