China natural gas demand set to outpace US over coming 20 years
As China pivots from powering the nation with coal to cleaner burning fuels and renewables, analysts say the country is in a “golden age” for natural gas, and will likely be the largest consumer of the fuel worldwide sometime between 2040 and 2050.
Analysts with Sanford C. Bernstein & Co. said in a research note that China is set to outpace the US as the highest consumer of natural gas in the next two decades.
By the end of August, natural gas demand in China had risen 18 per cent over the previous year, according to government data.
Bloomberg reports Neil Beveridge, an analyst with Bernstein wrote in a report that “China’s gas market has entered a new golden age.” He added “Growth in 2017 has shown significant improvement over 2016, as government policies to stimulate gas demand growth are starting to pay dividends.”
Beveridge believes demand will continue to grow in the coming years and should reach 300 billion cubic meters (Bcm) in 2020, up from 206 Bcm in 2016. And by 2040, natural gas demand in China could reach about 600 Bcm. Between 2040 and 2050, China is expected to surpass the US as the world’s largest consumer of natural gas.
In Asia, natural gas demand is forecast to double to 1.2 trillion cubic meters by 2025, according to Bernstein. Economic growth, urbanization, environmental factors and excess gas supply fuelled by US shale producers are factors behind the jump.
A factor that could through a spanner in the works is the possibility that renewable energy sources will be used more and integrated more quickly than anticipated.
