IEA Sees Slower Global Gas Demand Growth to 2021
Growth in natural gas demand will slow to an average 1.5 percent a year globally through 2021, as stagnation in Europe and uncertainty about Chinese consumption offsets robust growth in India, the International Energy Agency (IEA) said on Wednesday. After growth of 2.5 percent over the last six years, gas is facing competition from renewable energy and cheap coal, meaning the global gas market will remain over supplied. In Europe, Russian gas export monopoly Gazprom will be challenged by the prospect of a glut of liquefied natural gas (LNG) as export capacity rises 45 percent by 2021, even as demand drops in key markets in Japan and Korea. "Developments are pointing to a period of oversupply," IEA head Fatih Birol said in the agency's annual medium term gas outlook.
Russian LNG Export Plant to Award 3-cargo Tender
Russia's Sakhalin II liquefied natural gas (LNG) export plant will soon award a sell tender for three cargoes loading in August, two trade sources said. The cargos have been offered to long-term buyers and stakeholders in the project, not to the wider market, the sources said. One of the sources said the tender, which was launched last week, is likely to be awarded this week. Russian gas export monopoly Gazprom owns a 50 percent share in Sakhalin II, with Shell owning 27.5 percent, Japan's Mitsui 12.5 percent and Mitsubishi Corp subsidiary Diamond Gas 10 percent.
BP Finds Major Gas Field
According to a Bloomberg report, BP Plc discovered a gas deposit in the Caspian Sea that may double production from the largest natural gas development in Azerbaijan. BP shares rose 2.8 percent, the most in a month, in London trading after the company announcement. With the latest discovery, the field may be able to pump enough gas to supply Belgium and Luxembourg together. BP and partners including StatoilHydro ASA plan to spend $4.2b on the site's first stage, which started pumping fuel to Turkey in July, easing Europe's dependence on supplies from Russia's OAO Gazprom. The announcement is the second ``major'' discovery within a week after Petroleo Brasileiro SA said an offshore field could be Brazil's biggest ever oil find.
