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Gas to be fastest-growing fossil fuel until 2035

Oil&Gas Materials 5 September 2019 11:42 (UTC +04:00)

Baku, Azerbaijan, Sept.5

By Leman Zeynalova – Trend:

Over the past 12 months the gas market expanded by 5.3 percent, while the LNG segment grew at 8.6 percent in 2018, Trend reports citing McKinsey & Company.

McKinsey & Company is the trusted advisor and counselor to many of the world's most influential businesses and institutions.

In 2018, China and US together accounted for more than 60 percent of the overall demand growth, according to the Global Gas and LNG outlook to 2035.

“Until 2035 gas will be the fastest-growing fossil fuel with growth of 0.9 percent per year. The annual growth rate for gas will decelerate over time to 0.7 percent per year in 2023-2035 from 1.3 percent per year in 2018-2023,” said the company.

“While we expect coal demand to peak before 2025 and oil demand to peak around 2033, gas demand will continue to grow until 2035, albeit at a slower rate than seen previously. The power-generation and industrial sectors in Asia and North America and the residential and commercial sectors in Southeast Asia, including China, will drive the expected gas-demand growth. Strong growth from these regions will more than offset the demand declines from the mature gas markets of Europe and Northeast Asia.”

The report shows that gas supply to meet this demand will come mainly from Africa, China, Russia, and the shale-gas-rich United States.

“China will double its conventional gas production from 2018 to 2035. Gas production in Europe will decline rapidly.”

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Follow the author on Twitter:@Lyaman_Zeyn

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