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Uniqueness of natural gas to mitigate COVID-19 impact, says Gazprom

Oil&Gas Materials 23 December 2020 13:27 (UTC +04:00)
Uniqueness of natural gas to mitigate COVID-19 impact, says Gazprom

BAKU, Azerbaijan, Dec.23

By Leman Zeynalova - Trend:

According to Russian Gazprom's preliminary estimates, the global demand for gas in 2020 fell by about 2 percent, while other fossil fuels are showing greater decline in consumption, Trend reports referring to Gazprom.

“The most significant development of the year, including in the energy market, has been the new coronavirus pandemic. At the same time, the pandemic's impact on the global gas market has been quite limited,” said the company.

Gazprom believes that the demand for natural gas is poised to grow in the long term.

“By 2040, worldwide gas consumption is expected to rise by 1.3 trillion cubic meters and exceed 5.3 trillion cubic meters. The key trends that persist in the gas market are dwindling gas production in Europe and increasing gas consumption in China. In 2020, the amount of gas produced in Europe totaled some 220 billion cubic meters, a nearly 7 percent drop versus last year. This trend will continue for the long term. In China, gas demand has kept rising despite the pandemic-related restrictions. Preliminary estimates show that this country's gas consumption in 2020 stands at about 325 billion cubic meters, up by 6 percent against 2019. In the long term, China's gas consumption is expected to accelerate further,” the company said.

As environmental issues are becoming more and more relevant in the energy market, oil and gas majors continue to reshape their strategies by developing business areas related to natural gas, according to Gazprom.

“The events of 2020 that changed the current conditions in the global energy market are unlikely to make a tangible impact on the long-term outlook. The main reason for this is the uniqueness of natural gas as an energy source that can provide both energy security and sustainable development on a global scale,” said the company.

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Follow the author on Twitter: @Lyaman_Zeyn

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