McKinsey’s Global Energy Perspective, the product of a two-year research effort on the global energy demand and supply outlook for 2050, suggests that gas as a fuel will increase in importance in the global energy basket. LNG projections indicate a balance in global supply and demand. However, this balance is quite uncertain due to potential shifts in demand and supply.
As global energy demand grows, gas is expected to grow further in importance
The overall global demand for energy is likely to continue to grow at a compounded annual rate of 1.3 per cent over the next 40 years. Gas as a fuel is expected to grow significantly and at a faster rate than coal and liquids, eventually constituting 20 per cent of the global energy basket by 2050.
The bulk of this growth in gas demand will be led by ‘Emerging Asia’, including China, India and the rest of SouthEast Asia, which will account for about 35 percent of ƒ incremental global gas demand growth till 2020.
Global gas reserves are abundant, with the Middle East leading the charts on the reserves to production ratio, followed by Europe, and more reserves are being added all the time. Therefore, availability is not a constraint to the growth of the industry. LNG capacity, however, is a different story.
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