Global energy demand to grow 28 pc by 2035

KARACHI: The Pakistan Economy Watch (PEW) on Monday said global energy demand will grow 28 percent by 2035 while natural gas will be major fuel source within two decades.

By 2035, the world will need to produce over 32 percent more energy as compared to 2015 to satisfy the thirst of the world. Historically, coal and oil have been the dominant fuel sources in the global energy mix but global warming and environmental issue are changing situation in favour of natural gas, the cleanest fossil fuel, said Dr. Murtaza Mughal, President PEW in a statement issued from Islamabad.

Natural gas is the logical leading fuel source for the future which will have one-third of the market in two decades, says BP Energy Outlook 2035. Dr. Murtaza Mughal said that roughly 70 percent of natural gas is exported through pipelines with the remaining 30 percent is shipped as LNG however some experts are of the view that LNG trade to overtake pipeline trade in a decade.

According to Goldman Sachs, global energy demand from 2000 to 2015 grew at a Compound Annual Growth Rate (CAGR) of 2.3 percent and natural gas grew at 2.6 percent, over that same period, LNG has grown by 6.3 pc while current level in LNG trade stands at 250 million tonnes per annum worth more than $120 billion.

LNG is anticipated to grow at a 4.1 percent CAGR through 2035, significantly faster than the energy market as a whole at 1.4 percent. The current LNG market is being limited by supply constraints and global liquefaction capacity stands at 300 MTPA while 2035 annual traded volume could be as high as 550 MTPA. At the end of 2013, the global LNG fleet stood at 357 vessels, with another 108 conventional carriers already in order books apart from several larger Q-Flex and Q-Max sized carriers.