IEA: Gas market to remain well supplied as sources further diversify and compete
BAKU, Azerbaijan, Feb.17
By Leman Zeynalova – Trend:
In 2020, the market will remain well supplied as sources further diversify and compete, while emerging markets and coal to gas substitution are expected to remain the main drivers of consumption growth, Keisuke Sadamori, Director for Energy Markets and Security at the International Energy Agency (IEA), told Trend.
“After an outstanding growth of above 4.5 percent in 2018, natural gas markets cooled down in 2019 due to slower economic growth and milder temperatures, yet still driven by strong coal to gas switching in the US, Europe and China, and growing needs from emerging markets,” said the analyst.
Sadamori recalled that 2019 saw a continued double-digit growth in LNG trade supported by ample supply, and set a record in new investment decisions in LNG export projects.
“Natural gas is a key contributor to the clean energy transition, and the observed and future switch from coal is a strong component of this transition. The availability of ample and competitive supply sources is pivotal in the development of cleaner energy access in fast growing markets, as well as an opportunity to reduce the burden of energy subsidies by transitioning to market-based competitive pricing,” he said.
However, as Sadamori noted, natural gas remains a source of emissions and the industry has to do its part to further improve its environmental footprint, especially in terms of cutting methane emissions.
Becoming the world’s first climate-neutral continent by 2050 is the objective behind the European Green Deal (COM(2019) 640 final), the most ambitious package of measures that should enable European citizens and businesses to benefit from sustainable green transition.
The Green Deal is an integral part of the European Commission’s strategy to implement the United Nation’s 2030 Agenda and the sustainable development goals, and the other priorities. As part of the Green Deal, the Commission will refocus the European Semester process of macroeconomic coordination to integrate the United Nations’ sustainable development goals, to put sustainability and the well-being of citizens at the centre of economic policy, and the sustainable development goals at the heart of the EU’s policymaking and action.
Follow the author on Twitter: @Lyaman_Zeyn