CEDIGAZ has published its annual survey 'Natural Gas in the World. The survey indicates that the natural gas industry was severely hit by the past economic crisis, which impacted industrial activity and natural gas demand in 2009. But the gradual economic recovery since the second half 2009 has then given a firm boost to the natural gas activity worldwide, resulting in a strong expansion anticipated in the world natural gas production, as well as LNG and pipeline trade in 2010.

According to CEDIGAZ, world natural gas marketed production is expected to grow dramatically by around 4% in 2010, representing an additional supplied volume of 120 bcm, despite a degradation of the economic and market situation in the OECD zone in the second half 2010. In contrast to the 2.8% historic drop in 2009, world gas production is likely to exceed the 2008 level by around 1% in 2010. This predicted surge in marketed gas production can be explained by the gradual economic recovery, colder than normal temperatures in the northern hemisphere and natural gas price competitiveness in some OECD markets, in addition to the continued surge in gas consumption in developing countries.

Three regions are predicted to account for the bulk of the global production increase in 2010: firstly the Middle East, followed by Asia-Oceania and the CIS. At the national level, the largest growths in volume terms are expected in Russia, Qatar, China and the United States, where production has continued to be stepped up by shale gas.

At the national level, natural gas production growth primarily serves rising domestic demand but also responds to growing exports requirements mainly to Europe and Asia, in many producing countries. International natural gas flows are thus expected to progress substantially by more than 10% in 2010, after recording an historic decline of 6% in 2009. World LNG trade, in particular, is estimated to post an unprecedented and record absolute growth in the range of 47-55 bcm in 2010.

According to CEDIGAZ, the global gas supply-demand gap will gradually narrow in the short-term, resulting in the emergence of market tensions from the period 2012-2013. The future end of the gas bubble will be caused by a steady global demand growth under the impulsion of emerging and developing markets in the face of growing gas shortage in many producing countries on the supply side

Tags: CEDIGAZ