- •Foreword
- •Acknowledgements
- •Table of contents
- •List of figures
- •List of boxes
- •List of tables
- •Executive summary
- •After another record year, gas demand is set to keep growing to 2024
- •Asia is the key to demand growth, driven by China’s push for gas
- •The United States leads global growth in natural gas supply and exports
- •The global gas trade’s expansion is mainly driven by LNG
- •LNG investment is increasing, but more will be needed
- •Towards a global convergence of natural gas prices?
- •1. Demand
- •Highlights
- •Global overview
- •Sectoral outlook
- •Focus on LNG as a maritime fuel
- •Assumptions
- •Regional outlook
- •Asia Pacific
- •China
- •Japan
- •Korea
- •Australia
- •Other emerging Asian economies
- •India
- •Pakistan
- •Bangladesh
- •North America
- •United States
- •Canada
- •Mexico
- •Middle East
- •Iran
- •United Arab Emirates
- •Saudi Arabia
- •Eurasia
- •Russia
- •Belarus
- •Ukraine
- •Caspian
- •Europe
- •Power generation
- •Residential and commercial
- •Industry
- •Central and South America
- •Argentina
- •Brazil
- •Africa
- •Egypt
- •Algeria
- •Other North Africa
- •Sub-Saharan Africa
- •References
- •2. Supply
- •Highlights
- •Global overview
- •Regional supply outlook
- •North America
- •United States
- •Canada
- •Mexico
- •Asia Pacific
- •China
- •Unconventional gas
- •Developing the network to reduce internal supply bottlenecks
- •Increasing UGS capacity to develop seasonal flexibility
- •Australia
- •Other emerging Asian economies
- •India
- •Indonesia
- •Middle East
- •Iran
- •Qatar
- •Saudi Arabia
- •Eurasia
- •Russia
- •Azerbaijan
- •Other Caspian
- •Europe
- •Norway
- •The Netherlands
- •Other Europe
- •Central and South America
- •Argentina
- •Brazil
- •Africa
- •Egypt
- •Algeria
- •Sub-Saharan Africa
- •References
- •3. Trade
- •Highlights
- •Global natural gas trade
- •Regional trade outlook
- •Asia Pacific
- •China
- •LNG infrastructure
- •LNG supply
- •Pipeline imports and infrastructure
- •Japan and Korea
- •Other emerging Asian economies
- •Europe
- •Recent trends
- •A widening supply–demand gap
- •Natural gas infrastructure
- •The role of LNG
- •Americas
- •North America
- •South America
- •Global LNG market
- •2018 marked a third year of strong LNG trade growth
- •LNG demand outlook
- •LNG supply outlook
- •LNG trade flows
- •Liquefaction capacity and investment
- •LNG shipping outlook
- •References
- •4. Prices and market reforms
- •Highlights
- •Market prices in 2018–19
- •Asian LNG prices – from tight to loose
- •Europe – a counter seasonal price pattern
- •North America – stability and volatility
- •Global natural gas pricing overview
- •Prospects for natural gas trading hubs in Asia
- •Pricing and market reforms in regulated environments
- •China
- •City gate prices
- •End-user prices
- •India
- •Pakistan
- •Egypt
- •Russia
- •References
- •Annexes
- •Tables
- •Glossary
- •Regional and country groupings
- •Africa
- •Asia Pacific
- •Caspian
- •Central and South America
- •Eurasia
- •Europe
- •European Union
- •Middle East
- •North Africa
- •North America
- •List of acronyms, abbreviations and units of measure
- •Acronyms and abbreviations
- •Units of measure
Gas Market Report 2019 1. Demand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
2010 |
|
|
2017 |
|
|
2017 |
|
|
Growth 2010–17 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Population |
|
|
Length |
|
|
Population |
|
|
Length |
|
|
Population |
|
|
Length |
|
|
|
|
|
connected |
|
|
of pipe |
|
|
connected |
|
|
of pipe |
|
|
connected |
|
|
of pipe |
|
|
|
|
|
(million) |
|
|
(km) |
|
|
(million) |
|
|
(km) |
|
|
% |
|
|
% |
|
|
|
Jilin |
|
2.9 |
|
|
3 976 |
|
|
7.4 |
|
|
10 060 |
|
|
155% |
|
|
153% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Heilongjiang |
|
5.7 |
|
|
6 032 |
|
|
8.7 |
|
|
9 610 |
|
|
53% |
|
|
59% |
|
|
|
Shanghai |
|
10.9 |
|
|
17 317 |
|
|
17.2 |
|
|
30 387 |
|
|
57% |
|
|
75% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Jiangsu |
|
13.0 |
|
|
27 641 |
|
|
26.3 |
|
|
71 881 |
|
|
102% |
|
|
160% |
|
|
|
Zhejiang |
|
5.5 |
|
|
13 962 |
|
|
14.5 |
|
|
39 097 |
|
|
161% |
|
|
180% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Anhui |
|
6.4 |
|
|
9 802 |
|
|
13.4 |
|
|
23 763 |
|
|
111% |
|
|
142% |
|
|
|
Fujian |
|
2.7 |
|
|
4 296 |
|
|
5.7 |
|
|
9 513 |
|
|
107% |
|
|
121% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Jiangxi |
|
1.6 |
|
|
3 220 |
|
|
6.8 |
|
|
12 553 |
|
|
336% |
|
|
290% |
|
|
|
Shandong |
|
14.4 |
|
|
24 518 |
|
|
30.2 |
|
|
55 981 |
|
|
109% |
|
|
128% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Henan |
|
8.3 |
|
|
11 914 |
|
|
18.7 |
|
|
22 683 |
|
|
124% |
|
|
90% |
|
|
|
Hubei |
|
7.0 |
|
|
11 371 |
|
|
15.7 |
|
|
31 819 |
|
|
125% |
|
|
180% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Hunan |
|
4.2 |
|
|
7 177 |
|
|
10.2 |
|
|
17 025 |
|
|
142% |
|
|
137% |
|
|
|
Guangdong |
|
9.2 |
|
|
10 683 |
|
|
23.0 |
|
|
31 346 |
|
|
150% |
|
|
193% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Guangxi |
|
1.1 |
|
|
3 974 |
|
|
4.8 |
|
|
5 513 |
|
|
351% |
|
|
39% |
|
|
|
Hainan |
|
0.8 |
|
|
1 366 |
|
|
1.9 |
|
|
3 046 |
|
|
143% |
|
|
123% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Chongqing |
|
8.6 |
|
|
8 351 |
|
|
13.6 |
|
|
22 320 |
|
|
58% |
|
|
167% |
|
|
|
Sichuan |
|
11.6 |
|
|
23 889 |
|
|
20.8 |
|
|
49 338 |
|
|
79% |
|
|
107% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Guizhou |
|
0.1 |
|
|
195 |
|
|
3.4 |
|
|
6 414 |
|
|
2 708% |
|
|
3 189% |
|
|
|
Yunnan |
|
0.4 |
|
|
337 |
|
|
4.3 |
|
|
5 947 |
|
|
1 062% |
|
|
1 665% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Tibet |
|
0.0 |
|
|
- |
|
|
0.2 |
|
|
3 450 |
|
|
- |
|
|
- |
|
|
|
Shaanxi |
|
5.5 |
|
|
6 901 |
|
|
9.4 |
|
|
16 567 |
|
|
72% |
|
|
140% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gansu |
|
2.0 |
|
|
900 |
|
|
4.4 |
|
|
3 140 |
|
|
125% |
|
|
249% |
|
|
|
Qinghai |
|
0.9 |
|
|
830 |
|
|
1.6 |
|
|
2 244 |
|
|
76% |
|
|
170% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Ningxia |
|
1.1 |
|
|
2 424 |
|
|
2.3 |
|
|
6 279 |
|
|
115% |
|
|
159% |
|
|
|
Xinjiang |
|
4.5 |
|
|
7 145 |
|
|
6.9 |
|
|
13 358 |
|
|
56% |
|
|
87% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Japan
Japan’s natural gas demand totalled about 128 bcm in 2018, a slight decrease on 2017, with power generation needs decreasing by almost 1% and accounting for more than two-thirds of total consumption (Figure 1.5).
PAGE | 25
IEA. All rights reserved.
Gas Market Report 2019 1. Demand
Figure 1.5. |
Natural gas demand, Japan, 2004–24 |
|
|
|
|
|
|
|
|
||||||
bcm |
140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy industry own |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
use |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transport (including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
pipelines) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Industry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Power generation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2004 |
2006 |
2008 |
2010 |
2012 |
2014 |
2016 |
2018 |
2020 |
2022 |
2024 |
|
IEA, 2019. All rights reserved.
Natural gas consumption is expected to further decline in Japan during the forecast period as more nuclear capacity is due to restart.
As other sectors are expected to grow modestly, consistent with GDP growth, or even stagnate out to 2024, future gas consumption in Japan is sensitive to the power sector, particularly the timing and quantity of nuclear power plant restarts and the growth of renewable electricity generation (Figure 1.6).
Figure 1.6. Power generation by fuel and LNG import volumes, Japan, 2009–18
TWh |
1 200 |
|
|
|
|
|
|
|
|
120 |
bcm |
Nuclear |
|
|
|
|
|
|
|
|
|
|
|
||
|
1 000 |
|
|
|
|
|
|
|
|
100 |
|
Biofuels and waste |
|
|
|
|
|
|
|
|
|
|
|
||
|
800 |
|
|
|
|
|
|
|
|
80 |
|
Other renewables |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Hydro |
|
600 |
|
|
|
|
|
|
|
|
60 |
|
Oil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
400 |
|
|
|
|
|
|
|
|
40 |
|
Coal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
200 |
|
|
|
|
|
|
|
|
20 |
|
Gas |
|
0 |
|
|
|
|
|
|
|
|
0 |
|
LNG import volumes |
|
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018* |
|
(right axis) |
|
|
|
IEA, 2019. All rights reserved.
* Estimated.
Sources: METI (2018), Power Generation Performance, www.meti.go.jp/english/press/2018/pdf/0716_01b.pdf; IEA (2019c), Electricity Information (database), www.iea.org/statistics/.
The share of natural gas in power generation reached its highest in 2013 in the aftermath of the 2011 Great East Japan Earthquake and Fukushima Daiichi nuclear accident.
The outlook for nuclear restarts remains uncertain. After decommissioning two reactors of 1.1 GW in 2018, Japan has 38 nuclear reactors and 3 units under construction, equal to around 42 GW in total. Following establishment of the newest nuclear safety measures by the NRA, one
PAGE | 26
IEA. All rights reserved.