With Shell reporting that gas is expected to contribute over 40% of energy demand growth over the next two decades, it highlights the rationale behind Canada's drive and determination to develop their natural gas infrastructure.
Ahead of the Canada Gas & LNG Exhibition and Conference taking place 14-16 May in Vancouver, we asked 17 regional experts "Considering the Canadian gas and LNG industry in 2025, what would success look like to you and how will that be achieved?"
The global gas and LNG industry is continuously evolving, which is why the Gastalk webinar series provides a monthly expert review of the gas and LNG market. Covering the latest news of a specific region of the world each month, Gastalk interacts with different regional audiences to ensure everyone can participate live.
Asia-Pacific is a fast-evolving gas market characterized by destination restriction, orthodox policies and monopolistic domestic supply infrastructure. However, the scenario is set to change as major Asian countries are liberalizing the gas policies. The ending of long-term contracts has given way to more flexible spot market in Asia. Asian economies are to be benefitted from falling gas prices that provides an incentive for the government to develop gas infrastructure to support gas penetration in the domestic market.
Recent trends in world natural gas demand: The year 2017 still highlights the strong competition between natural gas, coal and renewable energies. While the global economic recovery has strengthened, it is estimated that growth in global gas consumption accelerated to 3% in the first three quarters of 2017, compared to the same period last year.
As reported by Energy Tomorrow, the natural gas industry in the US supports nearly 3 million jobs and adds approximately $385 billion to the national economy each year. The Croatian energy industry continues to show signs of development as more infrastructure comes online; providing the region with the opportunity to offer more jobs in the industry than ever before.
As the global energy industry continues to evolve and grow, the market is experiencing changes in every aspect; specifically in the legal and regulatory framework. In order for the Central and Eastern European gas industry to successfully progress and compete with the Western markets, it is essential for the gas players to keep ahead of the changes and ensure they are overcoming any potential challenges.
As reported in the BP Energy Outlook 2018, the world energy demand is forecast to grow by 1.3% from 2016 to 2040 per year. With all this growth coming from emerging economies, China and India each account for over a quarter of the increase making the two countries essential to watch.
In the past several years, China’s LNG industry advanced at an unstoppable pace. The five-year average growth rate of the domestic LNG production capacity is 36% and that of the LNG import is 15%. The domestic production reached 10.1 million tons in 2017, up 28% from 2016, and that of import reached 38.3 million tons, up 43% from 2016. By those two simple numbers, China’s LNG industry again shocked the world with its “China Speed”.
When it comes to gas monetisation, Canada is looking for new approaches to remain competitive against the mature exporting markets. NorthWest Innovation Works is a multi-national partnership, committed to meeting the global need of a cleaner source for methanol production. This new technology will not only reduce the global carbon footprint but also introduce new gas monetisation techniques to Canada.
As the global LNG industry continues to grow year-on-year, the market is experiencing an influx of new gas players. Despite numerous hurdles, Canadian LNG exports have now come online and in 2018 gas players are confident the volumes will increase.
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