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Gas in the world > Introduction
Introduction
2009 saw a downturn in demand for natural gas as a result of the worldwide economic crisis.

As the months of the first quarter passed by, the contraction in gas demand was confirmed: in February there was a drop of 7.7% across the countries of the OECD as a whole. The figures for the first half of 2009 indicated a decline in demand in the OECD of 6.5%. By September the cumulative figure had moderated: the decline stood at 4.8%.

At the 24th World Gas Conference, certain speakers did note signs of recovery around that time, mainly based on scenarios which should serve to instigate the onset of a phase of expansion. These circumstances were the fall in gas prices in the marketplace and the decline in the cost of raw materials used for gas infrastructure.

The supply of natural gas did not succeed in reacting in a sufficiently agile manner to this downturn in demand, the results being excess supply in the marketplace.

The evolution of prices on the main short and medium-term exchange markets revealed a considerable decline, with low figures being maintained for much of 2009. The Henry Hub, for example, stood at $3.74/MMBtu in June 2009. One year earlier the figure had been $12.59/MMBtu.

This situation was worsened by the increase in the output of non-conventional gas in the United States, thereby increasing the availability of conventional gas on the market, and further pushing gas prices downwards.

In terms of prices, one of the key features of 2009 was the decoupling of the price of natural gas from the price of crude on the short-term and spot market in the USA and Europe.

In Europe, much of the effort of the European Commission focused on implementing the measures required in order to avoid an interruption in the gas supply, as had occurred in January 2009. Contacts with the parties involved (Russia and Ukraine), analysis of alternative routes and measures for communal support between countries all received attention throughout 2009.

As a result there was meanwhile an increase in interest in the creation of more subterranean storage, with a Cedigaz report published in October 2009 indicating that 109 storage facilities were at the planning phase, operational by 2015, with a 24% increase in current capacity.

The strengthening of cross-border routes (including Hispano-French connections) was another of the approaches supported by the European Commission.

One of the reflections drawn from the preparations for and staging of the Copenhagen Climate Summit is that natural gas can help meet the targets set by the European Commission in the Green Package which it has passed.   Its lower level of emissions, the efficiency of the technologies available and its role as a backup for renewable energies make this source of energy the bridge to a low carbon-intensity energy future.
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Annual Report 2.009: Sedigas - The Spanish Gas Association