A rebound in global gas demand to 2024
following a record fall last year is poised to knock the world off track for a
climate goal of achieving net zero emissions by 2050, the International Energy
Agency (IEA) said on Monday.
More than 190 countries have signed the
Paris agreement designed to limit global warming to 1.5 degrees Celsius, which
will require a huge reduction in the use of fossil fuels such as coal and gas.
“Natural gas demand is set to rebound
strongly in 2021 and will keep rising further if governments do not implement
strong policies to move the world onto a path towards net-zero emissions by
mid-century,” the IEA said in its latest gas outlook.
Gas demand in 2021 is expected to rise by
3.6% as global economies recover following a record fall in 2020 due to
restrictions to limit the spread of the novel coronavirus.
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From 2022-2024 demand growth is expected
to average 1.7% per year, meaning gas demand would be too high to keep to the
IEA’s roadmap towards meeting global net zero emissions by 2050.
The IEA in May published a pathway for
the energy sector to meet the net zero emissions target and said investors
should not fund new oil, gas and coal supply projects. read more
But new demand could be met by projects
already approved or under development before the pandemic, the latest report
said.
Global gas prices have soared to
multi-year highs over the past month, with high temperatures driving demand for
power generation in the northern hemisphere for air conditioning and as some regions
such as Asia seek to boost stocks before winter. read more
The report said Europe's benchmark Dutch
gas prices are expected to average $9.5 per million British Thermal Units
(MBtu) in 2021, their highest since 2013, while Asian spot LNG prices are
expected to average $11/MBtu, the highest since 2014.
In Monday’s report the IEA said the gas
industry should ramp up efforts to reduce emissions such as addressing methane
leaks.
Reuters