2015 highly critical for world gas market
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The Pakistan Economy Watch (PEW) on Tuesday said ongoing year is very important for the unstable global gas market which will see a host of challenges including demand-supply issues.
The decision taken by Russia, Canada, Australia, US, EU, Mozambique, Tanzania and oil exporting countries will shape the future of the international gas market, it said.
Energy importing countries including Pakistan should make necessary preparations to effectively forecast and tackle the upcoming issues in their national interest, said Dr. Murtaza Mughal, President PEW.
He said that consumption of gas in Asia will surpass all other regions which is projected to hit 1.2 trillion cubic meters from current 720 tcm.
Keeping in view the increasing demand Russia has stepped into lucrative Asian market despite financial problems, receding prices and international sanctions, he added.
Dr. Murtaza Mughal said that Russia has planned to increase sale of LNG to India by 5 million tonnes by 2020 and signed agreement to sell 38 trillion cubic meters to China in a 400 billion dollar deal which will hurt all other exporters and plans on the table.
Deal between largest energy exporter and importer will hurt LNG demand and help China become major importer of Russian gas surpassing Germany.
Moreover, Turkey has also asked Russia to enhance planned supply from 14 tcm to 16 tcm while some deals between Russia and other countries are in the pipeline.
Despite challenges the share of unconventional gas will be boosted by 31 percent by 2040 and global regasification capacity has been projected to be enhanced by 75 percent by 2020-25 which will have a positive impact on environment and economies.
Analysts are awaiting the outcome of World Gas Congress schedules in June in Paris which can transform energy landscape forever, said Dr. Mughal.
