Demand for fossil fuels growing as global consumers think about energy security - Gazprom
MOSCOW. Nov 15 (Interfax) - The main outcome in global energy sector this year is the continued growth of demand for conventional energy resources amid geopolitical instability and greater attention to energy security issues, Russian gas giant Gazprom said in a press release.
Gazprom's management board heard a report Thursday on how events in 2024 will affect the long-term forecast for the development of the global energy market. This issue will later be put before the board of directors.
"It was noted that the main outcome of 2024 in global energy was the continued growth of demand for conventional energy resources amid geopolitical instability and increased attention to issues of energy security. Furthermore, the growth of gas consumption is accelerating. According to the first preliminary estimates, global gas consumption increased by 80 billion cubic meters in the period from January to October 2024 compared to the same period of last year. Russia, China and India accounted for more than 70% of the growth," Gazprom said.
The company also said that "Russian gas, foremost Gazprom's pipeline gas, plays a large role in ensuring the stability of gas supplies to China."
China also imports about 1 bcm of Russian gas per month in the form of liquefied natural gas (LNG). LNG in Russia is produced on a large scale by Sakhalin Energy, which is owned by Gazprom, Mitsui and Mitsubishi; and Yamal LNG, which is owned by Novatek , TotalEnergies and China's CNPC and SRF.
Gazprom recalled that it is preparing to bring daily gas supplies along the Power of Siberia pipeline to China up to the maximum contracted level ahead of schedule.
"The implementation of the project to supply gas along the second, Far Eastern, route is continuing precisely on schedule. Rapid growth of gas consumption in China is forecast to continue in the long term," the company said.
Demand for gas also grew in the Central Asian countries of Kazakhstan, Uzbekistan and Kyrgyzstan in 2024. These countries are steadily developing cooperation with Gazprom on imports of Russian pipeline gas, the company said.
"The actions of European Union countries, in contrast, are aimed at artificially destroying demand for gas to the detriment of their own economy. EU countries' policy has resulted in the further decline of gas consumption, closure of energy-intensive sectors and transfer of production facilities to other regions. Gas consumption in Europe will continue to decrease. The rate of decline will depend in part on future political decisions. Furthermore, European gas production is not expected to grow in the long term due to the depletion of its resource base," Gazprom said.
"Energy systems based on natural gas and long-term contractual relations have proven their resilience, which is particularly value amid changes on global markets. Natural gas will play an essential role in global energy in the future. Gazprom, with the largest reserves of natural gas, an efficient and environmentally sound energy source, will continue to steadily develop taking into account current trends on the global energy market," the company said.