Energy Transition Report 2018

Global gas demand forecast Most projections confirm the status of natural gas as an important transition fuel during the period 2017–50. As well as its importance for particular heat and industrial processes which cannot decarbonise quickly. It is expected that the supply of gas needed for electricity generation globally will grow initially before falling back as renewable generation increases. 12 The move to electric vehicles may contribute to this increased demand for gas, particularly as coal generation is phased out and priced out of themarket by the increased price of carbon emission certificates.

Global Gas Demand by Sector, IEA Sustainable Development Scenario (bcm)

47

4,184

277

349

9

3,752

-250

2016

2040

Power Industry Building Transport Other Total Demand

Indeed, as well as the IEA, the majority of forecasts expect ongoing expansion in demand for natural gas. The higher projections include some scope for increased use of natural gas in the transport arena as a stepping stone to the hydrogen economy. Liquified natural gas (LNG) and compressed natural gas (CNG) already have potential to reduce emissions and improve air quality in maritime transport, urban public transport and for heavy freight.

12 IEA World Energy Outlook 2017

13