A 50 per cent increase in demand for natural gas has been predicted over the next 25 years, according to the latest World Energy Outlook report.
The report, released by the International Energy Agency (IEA), confirms natural gas will remain an indispensable part of the global energy mix for decades as we move to a low-carbon future.
“Far from falling, demand for natural gas is forecast to increase by 50 per cent by 2040, increasing its share of global energy demand from 21 per cent today to 24 per cent,” said APPEA Chief Executive Dr Malcolm Roberts.
“The IEA also expects liquefied natural gas (LNG) exports will eventually overtake pipeline gas as the main form of long-distance trading.
“This is very good news for Australia. Our $200 billion investment in new LNG plants is set to supply a growing global market over the next 25 years. Australians will see a steady stream of high-paying jobs, export dollars and revenue for governments for decades to come.
“However, it is vital that governments heed the IEA’s warning that long-term investment in developing new oil and gas reserves is crucial to meet growing demand and replace declining production.
“In an extremely competitive global market, Australia cannot expect to attract further investment while unjustified political restrictions on gas development remain in place.”
Dr Roberts said the COAG Energy Council’s independent review of energy security in the national electricity market must take into account the latest data from the World Energy Outlook.
“Retaining sufficient gas-fired plant to provide for immediate back-up when renewable output falls or demand spikes is essential for reliable energy supply,” he said.
“To support that gas-fired generation, we need to see more development of new gas resources in eastern Australia. More gas supply and more gas suppliers will deliver greater energy security, enhance competition and put downward pressures on prices.”
The report also predicted oil and gas together will account for more than half of all global energy consumption in 2040.
Read the full report here.