SINGAPORE (Sept 3): Natural gas is increasingly replacing oil and coal as the fossil fuel of choice in large economies such as China and India, in part to curb emissions, as it is viewed as the cleanest fossil fuel. Seen as a “bridge” to renewables, it is sometimes termed a bridging fuel. New technology by Petronas Gas and Royal Dutch Shell is set to raise global accessibility to natural gas.
Asia is projected to have the highest natural gas demand growth over the next 15 years, mainly driven by China, which is expected to contribute 40% of the global growth of gas demand over the next four years as it shifts towards cleaner alternatives to replace coal (see Chart 1). The International Energy Agency projects global gas demand to grow 8% from 2017 to 2022. Higher consumption from the industrial sector is expected to be the main growth driver of gas consumption.