Global Gas Consumption Grows As Part Of Energy Mix

A new report by the Gas Exporting Countries Forum (GECF) which acts as a sort of informal OPEC for natural gas indicates that global gas consumption in 2024 may grow by 2.3%. The exporters forum is made up by the major Gas exporters including Russia and Qatar but interestingly not the USA.
Now Over the  first nine-month period of 2024, consumption in the main gas consuming countries increased by 2.8% compared to the same period in 2023, reaching 1.798 trillion cubic metres, according to the GECF. 
Now Projected growth in global gas consumption in 2024 has been revised upward by the GECF to 2.3%.
Now its worth noting that gas consumption is growing everywhere in the World particularly in Asia and the USA but falling in Europe, the fall in Europe is mor to do with politics and the supression of demand rather than normal factors

The revision is primarily driven by faster-than-expected growth in gas consumption in key consuming countries, which together account for 60% of global gas demand, as outlined in the report.

In September, the organisation was anticipating growth of 1.5%, and in October, this had already increased to 2.2%. Meanwhile, total gas consumption in the main consuming countries increased by 2.8% in the first nine months of 2024 compared to the same period in 2023, reaching 1.798 trillion cubic metres. There was an increase in consumption in Asia and North America, while the decline continued in the EU and the UK. ( note both the EU and the UK have embarked on ridiculous Green Energy policies with those in the UK looking at being suicidal and murderous with energy bills being so high most people have to choose between heating and eating.In the UK the Governement is looking at euthenasia of its old people by freezing them to death in the winter  
Ms. Rokotyanskaya, an expert on the stock market at BCS World of Investments, anticipates that global natural gas consumption will experience a similar growth rate next year, at approximately 2.3-2.5%.
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— The price of natural gas will be influenced by the rate of supply expansion, which is largely dependent on the speed of commissioning of new LNG export terminals in the United States (Golden Pass, Corpus Christi, Plaquemines), according to the analyst . — Recently, a number of Western media outlets published news about significant delays in the construction of some of them, so in 2025 the LNG spot market will most likely remain volatile in terms of price.

Energy consumption in the world is increasing annually, noted Tamara Safonova, associate professor at the Institute of Economics, Mathematics and Information Technology of the Presidential Academy.
In 2023, global energy consumption increased by 2.5%, with energy-using natural gas rising by 1.2%. Meanwhile, the total share of natural gas in the total generation volume has already reached 23%, although coal will remain the main source of energy generation worldwide (35%), according to Tamara Safonova, . — There is a possibility of further price growth for gas by the end of this year, contingent on increased consumption and a reduction in export supplies of natural gas and LNG to global markets.
In September 2024, China imported 6.55 million tons of liquefied natural gas, representing a 27% increase compared to the previous year (5.169 million tons). This represents a new monthly record for LNG intake. The trend of demand concentration in the Asia-Pacific region in September was supported by notable increases in imports from India (+8%), South Korea (+13%), and Taiwan (+17%). Concurrently, Europe saw a 15% reduction in LNG purchases, amounting to 1 million tons.

China receives pipeline gas from five countries. Russia, Kazakhstan, Turkmenistan, Uzbekistan and Myanmar. It was anticipated that pipeline gas supplies would increase year-on-year, largely due to the planned rise in Gazprom exports via the Power of Siberia.

Price fluctuations
In the short term, global gas prices will be subject to change as a result of both fundamental factors (the balance of supply and demand) and seasonal factors, according to Alexander Shneiderman, Head of Sales and Client Support at Alfa-Forex.
 The heating season in Europe has begun, which will result in higher gas prices in the EU over the coming months. Prices are unlikely to fall below $500 per 1,000 cubic metres, according to an expert who spoke to Izvestia. The conflict between Gazprom and Austria's OMV is exerting additional pressure on prices. Furthermore, the agreement on the transit of Russian gas to Europe through Ukraine will expire on 1 January.

Mr. Deev, head of the AMarkets analytical department, forecasts that prices may reach $1,000 per 1,000 cubic metres of gas.
We anticipate that prices will stabilise closer to spring. The European Commission anticipates growth of nearly 10% in 2024 and 14.4% in the following year.

— I anticipate that prices will also increase in the Asia-Pacific markets. Global consumption is increasing at a gradual but consistent pace. I do not anticipate a decline in demand. In the longer term, the introduction of new liquefaction capacities in the US, Russia and Qatar will lead to an increase in supply, which may result in a slight decrease in prices, according to the expert who spoke to Izvestia. However, this will be largely dependent on the growth rate of the Chinese economy and the demand for gas from Beijing, as well as from other Asian and African countries.

Austrian market
Last week, the price of blue fuel in Europe reached a yearly maximum, amid reports of the cessation of Russian gas supplies to Austria, and exceeded $500 per 1,000 cubic metres. Meanwhile, data from the TTF exchange shows that the cost was approximately $440 in mid-October.

In mid-November, the Austrian company OMV announced that it had won an arbitration case against Gazprom Export regarding the temporary cessation of Russian gas supplies in the autumn of 2022. In light of the court's ruling, the company has elected to recover €230 million from the opposing party. Additionally, the company has acknowledged that following the court's decision, contractual relations with Gazprom Export will likely experience a decline, potentially leading to the cessation of gas supplies by the Russian side.
The expert community has indicated that Gazprom has the option of reselling gas intended for Austria to Slovakia or reducing supplies via Ukraine. The final decision rests with the Russian company.
The daily volumes of Russian gas received by OMV this year amounted to approximately 17 million cubic metres, which could reach 6 billion cubic metres on an annual basis. This equates to approximately 40-45% of Gazprom's total supplies via Ukraine. Concurrently, Russian gas accounted for approximately 80% of supplies to Austria.
The global gas market is currently facing challenges due to new geopolitical issues. However, global gas demand is expected to grow rapidly in 2024, while supply remains constrained by weak growth in liquefied natural gas (LNG) production. Additionally, new LNG capacity is only set to come online globally in 2025-2026.
Despite the challenges of recent years, Russia is adapting to the new market conditions and will continue to redirect its gas to alternative markets, Yevgeny Smirnov told Izvestia.

However, he maintains that new LNG projects will play a pivotal role, with the commissioning of these projects currently accounting for a significant portion of the overall production increase. In general, prices on world gas markets remain highly sensitive to sudden shocks in supply and demand, resulting in elevated prices. Russia is leveraging this situation by initiating the development of reserves that were previously unprofitable to utilise at lower prices. Consequently, the consistently high (and growing) prices on world gas markets are driving an increase in recoverable reserves.