Natural gas will continue to increase its share of the global energy mix, but the rate of increase is lower than last year’s forecast, according to a report from the International Energy Agency (IEA).
The Medium-Term Gas Market Report said the use of natural gas is expected to increase at 2.4 percent per year between now and 2018, slightly lower than IEA’s projected 2.7 percent rate of growth that was predicted in 2012. The drop is due to demand weakness in Europe and difficulties with upstream production growth in the Middle East and Africa.
Total gas demand is expected to increase to nearly 4,000 billion cubic metres (bcm) in 2018 from 3,427 bcm in 2012, but coal is expected to regain its market share this year because of a lack of regulations against coal-fired power plants. Europe is expected to see a weak and partial recovery due to the Eurozone crisis and low carbon prices, while exports from the Middle East are expected to decline.
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