Big gains in natural gas consumption drove global energy demand growth in 2018: IEA

Natural gas led global energy demand growth in 2018, said the International Energy Agency’s (IEA) latest Global Energy and CO2 Status Report.  According to the report, demand for natural gas increased by an estimated 4.6 per cent in 2018. This comprised 45 per cent of the world’s total energy demand increase last year, which rose 2.3 per cent.

The United States, China, and India together accounted for nearly 70 per cent of the rise in energy demand, driven by a strong global economy and a switch from coal to gas in power generation. The Asia-Pacific region was a significant contributor to global energy demand growth, particularly South Asia and South Korea. This is in line with Shell’s findings that Asian LNG imports exceeded forecasts in 2018.

The demand for all fuel types increased in 2018. Key highlights from the report include the following:

• Renewables demand increased by four per cent, accounting for almost 25 per cent of global energy demand growth. Much of this growth was due to renewables-based electricity generation. Renewables now make up 26 per cent of the world’s electricity generation mix, second only to coal. Solar photovoltaic, hydropower, and wind each contributed about 30 per cent of the growth, with bioenergy contributing the rest.
• Global oil demand rose by 1.3 per cent in 2018, compared to 1.6 per cent in 2017, due to higher prices. Average Brent oil prices were 30 per cent higher in 2018 than in 2017, and this was especially felt in emerging markets like India and the Middle East.
• Coal demand grew by 0.7 per cent in 2018, compared to one per cent in 2017. Despite the slower growth, coal remains the largest source of electricity. It is still the more competitive option in some countries in South and Southeast Asia, where there is an increased demand for electricity.