According to the IEA, worldwide gas demand will increase to 3.2 trillion cubic metres over the next five years, a growth rate of 2.4% per year. Even if gas continued to be expensive, the growth rate would only begin to slow during or after 2010, the report said.
The review analyses and forecasts the natural gas market between 2000 and 2010, assessing the LNG sector, investments in the gas industry, and the role of electricity generation in driving global gas demand.
While the LNG industry currently comprises only 6.5% of the gas market, it is likely to attract half of the sector’s investments, according to the IEA.
The report said investment is strong in the power sector would remain strong with most new power plants in the developed world being gas-fired.
But the skills shortage and high commodities prices meant gas production and LNG projects were falling behind schedule, which would keep upward pressure on gas prices for the near future.
The IEA also the LNG sector was driving a move towards a global gas market, and as LNG’s share of the gas market grew, this trend would become stronger.
The Atlantic LNG market is likely to be comparable in size to the Pacific market by 2010, the report said.