Oversupply of gas to continue in short to medium term
Baku, Azerbaijan, Oct.12
By Leman Zeynalova – Trend:
It is likely that the current market oversupply of natural gas and low price environment will continue in the short to medium-term, according to the World Energy Resources 2016 report posted on the World Energy Council’s website.
Natural gas is the only fossil fuel whose share of the primary energy mix is expected to grow and has the potential to play an important role in the world’s transition to a cleaner, more affordable and secure energy future, according to the report.
“Advances in supply side technologies have changed the supply landscape and created new prospects for affordable and secure supplies of natural gas,” said the report. “Natural gas markets are becoming more interconnected as a result of gas-to-gas pricing, short-term trade and consumer bargaining power.”
The World Energy Resources 2016 report said that the future of demand is highly uncertain, new policy frameworks and continued cost improvements will be needed to make gas more competitive.
“Currently, the fall in demand in Asia and growing export capacity in Asia and North America, have created an oversupply globally,” said the report. “As further supplies come to the market, it appears likely that the current market oversupply and low price environment will continue in the short to medium-term.”