Southern African Natural Gas Advisory Service Service

Use of natural gas Overview

Global natural gas consumption doubled from 1980 to 2010 rising from 53 trillion cubic feet (Tcf) to 113 Tcf.  Production in the Middle East had the greatest growth followed by consumption in Asia where the increase was from 2.2.Tcf to more than 19 Tcf.  The BP Statistical Review of World Energy reported that LNG global shipments increased by 23% between 2009 and 2010. In the U.S. which accounts for 25% of total global natural gas consumption, the increase in demand between 1980 and 2010 rose by 29%.

Since the nuclear accidents in Japan in 2011 the country has been importing ever larger quantities of LNG. With nuclear reactors providing 30% of Japan’s electricity in 2010 and now most its 54 nuclear reactors shut down there has been an unprecedented flight to safe and reliable natural gas and a surge in demand for LNG. These imports together with the shutdowns in the industrial sector because of the earthquake have caused Japan to suffer its first trade deficit in thirty years. Japanese companies and electricity producers are now turning to Australia, the world market and Mozambique (with the recent major gas discoveries) to secure long term natural gas supplies. Other nations in Asia and Europe are also turning away from nuclear power and looking to increase their LNG imports. Germany has also moved away from nuclear electricity generation for environmental and safety reasons.              .  

The use of natural gas to meet an ever widening range of human energy needs will continue to grow throughout the world. Gas is a vital component of the global energy mix, supplying a quarter of total energy requirements and this share of the total amount of energy used in the world is growing. Today’s natural gas industry bears little resemblance to yesterday’s highly segmented and over-regulated old fashioned local utility business.

It is now a modern, highly efficient industry operating in competitive energy markets as a successful global business that is defined by its customer-orientated approach to business. Gas supply companies now have unprecedented levels of flexibility to fashion a combination of supply, commercial and end-use technologies tailored to each customers unique energy requirements.

With the unparalleled competitive advantages of natural gas when set against the other alternative energies available, this energy source is widely deployed both as a primary energy for the production of electricity and processing heat in industry; and, as a secondary premium energy in households and the commercial sector. The cleanliness, efficiency and convenience of natural gas provide a superior end use energy service than many other alternative thermal fuels. With the additional price competitiveness of natural gas, when all the many comparative advantages are combined, then the increased use of natural gas is set to continue to grow rapidly in the future.       

World wide consumption of Natural Gas per capita 2011- tonnes oil equivalent