Natural gas demand is expected to recover progressively in 2021 in mature markets and grow in emerging markets thanks to low prices. Demand is projected to decrease in 2020, with most of the declines in power generation. The organization was created back in 1974. Adjusting for temperatures, consumption grew slightly at 0.4% for the same period.Warmer than average temperatures during winter 2019/20 had a strong impact on heating demand, resulting in a 14% y‑o‑y drop in natural gas consumption in the residential and commercial sectors for the first quarter. Overall, natural gas flows to Europe (including both LNG and pipeline gas, notably Norwegian pipeline flows) fell 9% y‑o‑y in the first five months of 2020.The combination of continued strong supply growth, mild winter temperatures and the imposition of Covid‑19 related lockdowns pushed natural gas prices to lows not seen in over a decade across all major consuming regions.In the United States, Henry Hub prices in Q1 2020 fell by over 33% y‑o‑y to an average of USD 1.9/MBtu, its lowest quarterly price level since 1999. Due to this change if you are seeing this message for the first time please make sure you reset your password using the One of the warmest winters on record, coupled with the impact of Covid-19 lockdowns, means natural gas demand will fall by 4% in 2020, says the IEA In Thailand, where natural gas accounts for 60% of electricity generation, the government introduced a range of electricity bill subsidy measures to support electricity consumption in late April. The most pertinent elements of this picture are summarised here, and described in more detail in the IEA Global Energy Review 2020. You can unsubscribe at any time by clicking the link at the bottom of any IEA newsletter. All comments are subject to editorial review. Preliminary data suggests that while wind power output increased by over a third (or 30 TWh) y‑o‑y, gas-fired generation fell by 10 TWh, depressing gas demand by an estimated 2.5 bcm.
This is because the main medium-term drivers of demand growth are subject to several key uncertainties. The current forward curve suggests that TTF could trade at a discount to Henry Hub through the summer months, reflecting an expected persistent oversupply. Gas consumption is expected to fall by 4% in 2020, under the successive impacts of lower heating demand from the warm winter, the implementation of … You can unsubscribe at any time by clicking the link at the bottom of any IEA newsletter.
Consumption in the industrial sector decreased by 6.7% y‑o‑y.
Editor | Rigzone First estimates for May indicate a limited y‑o‑y demand increase, close to 1%.Japan, the world’s largest LNG importer, saw its imports decrease by close to 5% y‑o‑y over the first five months of 2020, affected by warmer than usual weather, slower economic activity and the decreasing share of natural gas in the country’s electricity mix.Korea’s LNG imports increased by about 14% y‑o‑y during the first five months of 2020, though state-owned incumbent KOGAS reported a 4% drop in domestic sales over the first quarter, and a 17.4% fall in April. The Americas has been the worst affected region, as of August 12, with 10.7 million confirmed cases and 393,727 deaths, WHO data shows.The IEA provides analysis, data, policy recommendations and real-world solutions to help countries provide secure and sustainable energy for all, according to its website. The Covid-19 pandemic hit an already declining gas demand, faced with historically mild temperatures over the first months of the year. The International Energy Agency has lowered its 2020 oil demand forecast. Country aggregates for OECD Total, OECD Americas, OECD Asia Oceania, OECD Europe, IEA and regional totals are included. Natural gas demand is expected to progressively recover in 2021, however the Covid-19 crisis will have longer-lasting impacts on natural gas markets as the main medium-term drivers are subject to high uncertainty. Gas demand in the residential and commercial sectors decreased by more than 3% y‑o‑y during Q1 2020.Falling gas prices supported further coal-to-gas switching in Europe’s power sector during the first quarter, with the share of gas-fired generation in thermal generation increasing from 45% to 49% at the expense of both coal and lignite. Nearly all the global population is affected by some form of containment measure.The restrictions represent a challenging combination of macroeconomic shocks in both supply and demand.
The LNG influx into Europe primarily weighed on the import flows of traditional pipeline suppliers: imports from Russia and North Africa both decreased by about 25% and Norwegian flows fell by 4% y‑o‑y in the first five months of the year. These markets concentrate most of the loss in … Antonio Erias Rodríguez, Songho Jeon, Akos Losz, Gergely Molnár, Sean O’Brien, Tomoko Uesawa and Jean-Baptiste Dubreuil are the main authors. Supply-side indicators are sending mixed signals on the initial months of 2020, with US domestic gas production and global LNG supply still increasing compared to 2019, while Russian production and European imports show some decline.US natural gas production increased by 5.3% y‑o‑y on average from January to the end of May in spite of lower domestic consumption, which dropped by 2.8% over the same period due to the joint impacts of warmer than average temperatures and the introduction of lockdowns in multiple states. The Natural Gas Information 2020 data service contains time series of annual gas supply balances for OECD from 1960 to 2019 and non-OECD countries from 1970 to 2018. However, stable or growing imports in some cases compensated for declines in domestic production or added to a build-up in storage levels.China experienced sluggish growth in gas demand in the first months of 2020, negatively affected by mild temperatures in January and the introduction of lockdown measures in February.
The implementation of nationwide lockdowns in several European countries resulted in a sharp drop in natural gas consumption, falling by 11% between the start of the lockdowns (11 March) and end of May, translating into a 10 bcm drop in absolute terms.This drop has been primarily due to lower demand from the industrial and power generation sectors, while distribution network consumption was less affected – residential consumption benefitted from colder temperatures in the second half of March, but declined in April and May due to lower heating degree days and decreasing activity in the service sector.European electricity consumption decreased by 12% between 11 March and end of May, severely weighing on gas-fired power generation, which fell by over 20%, equivalent to an estimated 5 bcm of lost gas use.
Network operating companies reported a 50% drop in daily consumption as of early April compared to monthly operational forecast.