Sedigas - Annual Report 2.010

Gas in the world > Production, demand and international trade > Production and demand

Production and demand

In Europe, demand showed highly positive progress over the first quarter of 2010, with a 9.6% increase, sustained by harsher climate conditions than in 2009 during this same period.

The cumulative values as of September indicated a 5.7% increase in the demand for natural gas in OECD countries. In North America, consumption rose by 4.2%, while it increased 11.2% in Pacific OECD countries. In Europe, this cumulative hike in demand was even greater, at 6.5%.

COMMERCIAL PRODUCTION OF NATURAL GAS AROUND THE WORLD (10⁹ m³) (1)

North America
USA
Canada
Central & South America
Mexico
Venezuela
Argentina
Trinidad & Tobago
Bolivia
Brazil
Europe (2)
Norway
United Kingdom
Netherlands
Germany
Italy
Romania
Eastern Europe and CIS
Russia (3)
Turkmenistan
Uzbekistan
Kazakhstan
Ukraine
Azerbaijan
Africa
Algeria
Egypt
Nigeria
Libya
Middle East
Saudi Arabia
Iran
Abu Dhabi
Qatar
Asia-Oceanía
Indonesia
Malaysia
Australia
Pakistan
China
India
TOTAL WORLD

1970

651,8
595,1
56,7
34,5
12,6
9,0
6,0
---
n.d.
n.d.
79,7
0,0
11,1
33,4
13,9
13,1
24,9
234,2
197,9
n.d.
n.d.
n.d.
n.d.
n.d.
3,4
2,8
0,1
---
0,3
19,5
0,8
12,0
0,7
---
17,0
1,3
0,9
1,5
3,8
3,4
0,3
1.040,1

1980

624,4
549,6
74,8
65,5
28,6
14,8
9,4
---
0,4
0,3
199,1
26,6
37,3
90,3
27,5
12,5
34,3
484,4
434,8
n.d.
n.d.
n.d.
n.d.
n.d.
27,2
18,0
2,9
1,1
5,2
44,1
10,2
8,0
7,2
3,3
74,1
18,5
1,1
9,5
8,1
14,3
12,7
1.518,8

1990

611,7
504,9
106,8
85,0
26,7
21,4
17,8
4,7
2,7
3,4
196,7
27,1
49,6
72,4
23,4
17,3
28,3
855,1
814,6
73,7
34,3
6,0
23,6
8,3
70,9
51,6
8,1
4,0
6,2
99,9
30,5
24,2
15,3
6,3
149,0
45,4
18,5
18,4
14,4
14,4
10,6
2.068,3

2000

720,8
537,6
183,2
134,1
35,8
30,5
37,4
14,1
3,2
7,2
280,3
52,9
108,3
67,8
21,2
15,7
13,6
746,6
584,2
47,0
56,4
11,5
18,0
5,7
125,7
83,2
18,3
12,5
5,9
213,2
49,8
60,2
27,5
29,1
271,2
66,8
48,4
32,3
22,8
27,1
22,5
2.491,9

2005

697,6
511,8
185,8
177,4
39,1
28,7
45,6
31,0
10,4
11,4
298,5
87,0
87,8
72,8
16,6
12,1
12,4
775,2
596,9
59,0
55,7
23,7
19,3
5,7
172,8
88,0
42,5
22,4
11,3
317,3
71,2
100,9
38,2
45,8
361,6
73,8
63,5
38,9
30,8
48,0
29,9
2.800,4

2008

745,3
574,1
171,2
197,3
46,6
24,1
44,1
39,3
14,7
12,6
307,3
99,2
69,9
80,0
15,6
9,1
10,7
818,5
621,3
66,1
63,4
31,4
19,8
16,3
210,5
86,5
59,0
31,7
15,9
382,6
80,4
116,3
40,8
77,0
416,0
70,0
61,2
47,5
38,0
76,1
32,2
3.077,4

2009

741,9
582,4
159,5
193,0
48,3
23,1
41,4
40,6
12,6
10,3
290,3
103,8
59,1
73,7
14,6
8,0
11,0
714,6
546,8
35,7
62,3
33,5
19,9
16,3
199,2
81,4
62,7
20,1
15,9
405,9
78,5
131,2
39,5
89,3
437,2
72,4
58,6
52,6
38,4
82,0
40,6
2.982,2

2010

762,8
610,4
152,4
201,5
47,7
22,9
40,1
42,4
14,7
12,4
296,5
106,4
56,3
82,9
12,7
8,3
10,5
784,9
610,1
41,6
61,0
34,9
19,0
18,2
210,1
85,1
61,3
28,5
16,0
459,8
83,9
138,5
41,7
116,7
485,6
82,8
61,2
55,3
39,5
93,0
52,8
3.201,3

(1) Apart from North America, only includes the main producing states in each area.
(2) EU 25 plus Norway, Switzerland and Turkey.
(3) Includes total figures for the former USSR/CIS until 1995 inclusive. From 2000, only refers to data from the Russian Federation. Source: CEDIGAZ

These data accumulated prior to September indicate a 1.6% production increase in North America. In late 2010, the AIE disclosed that non-conventional gas was providing 50% of the total natural gas produced in the US, as opposed to 30% a decade earlier.

The US and the EU, during their periodic meetings on energy, reached an agreement in the meeting held in November, whereby both parties would work together to mine non-conventional gas located in European territory.

A report drawn up by Cedigaz and published in May 2010 lists 642 operational underground natural gas storage facilities around the world, of which 399 are located in the US and 130 in Europe. Altogether, they have an operating capacity (working gas) of 333.4 bcm. Currently, another 108 storage facilities are either being extended or newly built, with a joint capacity totalling 133.4 bcm.

This 40% scheduled growth in underground storage capacity denotes the interest this sector is inspiring around the world, in an effort to boost supply security for natural gas customers.

COMMERCIAL PRODUCTION OF NATURAL GAS. DISTRIBUTION (%) BY LARGE GEOGRAPHICAL AREA.

North America
Central & South Amer.
Western Europe
CIS
Africa
Middle East
Asia-Oceania
TOTAL WORLD
TOTAL bcm(10⁹ m³)

1970

62,7
3,3
7,7
22,5
0,3
1,9
1,6
100,0
1.040,1

1980

41,1
4,3
13,1
31,9
1,8
2,9
4,9
100,0
1.518,8

1990

29,6
4,1
9,5
41,3
3,4
4,8
7,2
100,0
2.068,3

2000

28,9
5,4
11,2
30,0
5,0
8,6
10,9
100,0
2.491,9

2008

24,2
6,4
10,0
26,6
6,8
12,4
13,5
100,0
3.077,4

2009

25,1
6,5
9,7
23,9
6,7
13,6
14,6
100,0
2.982,2

2010

23,8
6,3
9,3
24,5
6,6
14,4
15,2
100,0
3.201,3

Source: CEDIGAZ. Prepared by Sedigas.

WORLDWIDE CONSUMPTION OF NATURAL GAS (10⁹ m³)

North America
USA
Canada
Central & South America
Argentina
Mexico
Brazil
Trinidad &Tobago
Venezuela
Chile
Western Europe
Germany
United Kingdom
Italy
Netherlands
France
Spain
CIS
Russia
Ukraine
Uzbekistan
Byelorussia
Kazakhstan
Turkmenistan
Africa
Algeria
Egypt
Middle East
Iran
Saudi Arabia
Asia-Oceania
Japan
China
India
South Korea
Indonesia
Malaysia
Thailand
Pakistan
Australia
TOTAL WORLD

2006

716,0
620,9
95,1
180,7
41,8
52,9
19,3
20,2
26,0
7,5
537,8
92,6
91,0
87,8
40,4
49,9
35,2
649,3
417,3
70,3
54,8
20,5
27,1
14,3
81,6
25,6
28,3
290,7
108,7
73,5
419,1
85,3
59,6
38,8
34,3
27,9
26,1
33,3
36,1
25,6
2.875,2

2007

733,6
648,3
85,3
184,9
43,9
55,6
19,9
20,2
26,6
4,1
548,0
86,2
91,9
83,5
36,3
46,9
35,2
632,1
426,2
71,2
47,8
20,6
32,8
16,9
87,2
26,5
30,6
302,3
113,0
74,4
451,9
92,7
71,8
41,4
34,6
34,6
24,2
35,4
36,8
23,6
2.940,0

2008

745,0
659,8
85,3
194,3
44,4
59,3
23,7
21,9
25,6
2,6
570,4
88,1
94,9
85,8
43,4
49,2
39,0
650,6
440,2
75,0
48,3
21,1
36,4
10,3
101,1
27,5
42,1
330,3
119,3
80,4
485,8
96,2
80,5
43,0
36,8
34,0
31,8
37,3
38,0
27,3
3.077,4

2009

746,0
657,9
88,1
187,6
43,1
60,7
18,7
20,9
24,9
2,8
540,1
91,4
88,1
77,2
40,6
47,9
35,1
562,5
383,6
64,9
39,4
17,6
28,8
11,0
99,4
28,8
44,4
344,4
131,7
78,5
502,2
89,6
89,6
53,2
34,9
36,7
29,1
39,2
38,4
28,3
2.982,2

2010

767,0
684,5
82,5
201,1
43,5
61,8
25,1
22,0
25,1
n.d
566,9
90,8
94,3
83,5
46,8
48,1
35,1
626,5
424,9
80,2
39,9
21,6
29,9
10,9
102,5
29,9
45,7
366,6
137,5
83,9
570,7
96,8
109,0
65,0
44,0
40,5
30,6
45,1
39,5
29,8
3.201,3

2010(%)

24,0
21,4
2,6
6,3
1,4
1,9
0,8
0,7
0,8
n.d
17,7
2,8
2,9
2,6
1,5
1,5
1,1
19,6
13,3
2,5
1,2
0,7
0,9
0,3
3,2
0,9
1,4
11,5
4,3
2,6
17,8
3,0
3,4
2,0
1,4
1,3
1,0
1,4
1,2
0,9
100,0

Source: CEDIGAZ. Prepared by Sedigas.

CONSUMPTION OF NATURAL GAS BY SECTOR WITHIN THE OECD AND IN INDIVIDUAL COUNTRIES (%). 2008

	Electricity Generation			Industry	Residential	Other (1)	Total	Total
	El. Plants	Cogener.	Subtotal		Commercial		(%)	(Tj)
USA	23,9	7,2	31,1	21,5	34,3	13,1	100,0	25.171.446
Canada	6,5	3,2	9,7	26,5	32,4	31,3	100,0	3.642.460
France	1,4	12,7	14,1	23,5	47,0	15,5	100,0	1.857.101
Italy	22,4	22,1	44,6	16,3	35,4	3,7	100,0	3.234.044
United Kingdom	30,1	4,2	34,3	12,1	41,1	12,4	100,0	3.926.539
Germany	7,4	13,6	21,0	22,1	45,7	11,2	100,0	3.631.675
Netherlands	8,8	24,2	33,0	15,2	36,8	15,0	100,0	1.617.862
Spain	42,1	9,2	51,4	26,8	12,7	9,1	100,0	1.624.721
Belgium	15,8	12,5	28,3	30,8	33,4	7,5	100,0	696.115
Portugal	47,8	14,4	62,2	24,8	10,0	3,1	100,0	191.078
Czech Republic	0,1	4,3	4,4	33,6	47,6	14,4	100,0	329.762
Greece	68,6	2,1	70,6	12,8	9,5	7,0	100,0	164.332
Ireland	57,3	5,4	62,7	15,0	21,7	0,6	100,0	202.664
Austria	9,7	18,9	28,6	32,8	23,5	15,1	100,0	347.498
Poland	0,0	7,9	7,9	24,4	38,9	28,8	100,0	577.650
Hungary	14,5	17,5	32,0	11,5	44,8	11,7	100,0	491.290
Switzerland	0,0	3,7	3,7	32,8	55,2	8,2	100,0	130.599
Turkey	48,1	6,4	54,5	10,6	31,8	3,1	100,0	1.404.552
Japan	59,2	0,0	59,2	8,5	28,3	3,9	100,0	4.069.897
Australia	28,0	6,6	34,6	28,4	14,4	22,7	100,0	1.249.227
Mexico	48,0	0,0	48,0	17,6	1,9	32,4	100,0	2.283.786
Korea	32,8	11,6	44,4	17,1	35,5	3,1	100,0	1.492.013
OCDE Europe	20,0	13,1	33,0	18,8	36,4	11,8	100,0	21.362.561
OCDE N. America	23,6	6,2	29,8	21,8	31,7	16,6	100,0	31.097.692
OCDE Pacific	47,5	4,0	51,5	14,1	26,8	7,5	100,0	6.970.727
Total OCDE	25,1	8,4	33,5	19,8	32,8	13,8	100,0	59.430.980

(1) Includes own use, consumption for transformation (except at electricity and cogeneration plants) and consumption in the energy sector, transport, agriculture, other non-specific use and leakage during distribution.

Source: Energy Statistics of OECD Countries.2010 Edition. I.E.A. Paris. Prepared by Sedigas.

WORLDWIDE CONSUMPTION OF NATURAL GAS (10⁹ m³)

Change by large geographical area

North America
Central & South America
OECD-Europe
Eastern Europe and CIS
Africa
Middle East
China and India
TOTAL

1970

651,4
33,8
82,2
236,7
1,9
18,5
15,6
1.040,1

1980

628,4
62,7
235,4
457,1
18,6
41,5
75,1
1.518,8

1990

612,4
85,5
290,1
792,1
39,5
95,1
153,6
2.068,3

2000

723,2
132,8
431,0
659,6
59,5
192,2
293,8
2.491,9

2005

705,4
168,9
536,2
653,8
81,2
262,9
392,0
2.800,4

2008

745,0
194,3
570,4
650,6
101,1
330,3
485,7
3.077,4

2009

746,0
187,6
540,1
562,5
99,4
344,4
502,2
2.982,2

2010

767,0
201,1
566,9
626,5
102,5
366,6
570,7
3.201,3

2010(%)

24,0
6,3
17,7
19,6
3,2
11,5
17,8
100,0

Source: CEDIGAZ

The first Report on 2010 estimates published by Cedigaz in late April 2011 indicates that the year 2010 was an exceptional one for the world natural gas industry, which posted a record growth in production and trade to cope with an accelerated expansion of gas markets.
According to estimates CEDIGAZ, supply and consumption of natural gas in the world, increased by 7.3% in 2010, the largest growth in history.

Accelerated market developments in every region have driven this remarkable growth in world natural gas supply in 2010.

This impressive rebound in world gas supply largely offset the historic decline observed in 2009, which was marked by the worldwide economic recession. Indeed, the substantial increase in 2010, at a pace which has not been recorded for the past 40 years, should bring production for 2010 up to a level approximately 4% higher than it was before the crisis in 2008.
The noticeable acceleration of the growth in natural gas demand in 2010 can be ascribed to an accumulation of multiple factors. It was driven by emerging and developing markets - chief among them being India and China - but it has also been sustained by a number of OECD countries because of the following factors:

- exceptionally cold winters (leading to increased heating demand) and particularly hot summers in Asia (leading to electricity demand);
- competitive natural gas prices in the manufacturing and electrical sectors;
- a firm recovery in economic and industrial activity in the first half of the year. However, the rapid recovery that was observed over the first half of 2010 in many OECD countries was followed by a slowdown in industrial activity, particularly in Europe, where the weaker increase in consumption over the second half of the year could more largely be explained by the cold weather at year-end.

Every production region posted positive growth in 2010 to meet the surging demand, although at different paces. Production zones in the Community of Independent States (CIS) recorded the largest increase of supply in volume terms (+70 bcm), contributing more than a third of global growth. The second and third largest increases in output came respectively from the Middle East, driven by Qatar, and Asia-Oceania, where China, India, Thailand and Indonesia in particular all experienced double digit growth.

MEDGAZ

Annual Report 2.010: Sedigas - The Spanish Gas Association