Natural gas supply transformation shaping a new gas market


Significant natural gas demand growth in North America will occur over the next decade, driven by a combination of greater use of gas-fired generation plants and higher natural gas demand for industrial use, according to research from Navigant.

In the mid-term much of the growth will be driving by increased coal-to-gas substitution in the power sector as a result of persistently low but slowly increasing natural gas prices, as well as significant scheduled retirements of existing coal-fired generation plants which are expected across the United States over the next five to seven years.

Natural gas use in the U.S. power generation sector is expected to increase 55 percent from 28.9 Bcfd in 2012 to 44.8 Bcfd in 2035. Demand is projected to increase 37 percent by 2035.

Currently, shale gas represents 38 percent of U.S. production, but will increase to 66 percent in 2035.

"With the recent transformation of natural gas supply in North America, ample supply has already driven impactful market responses, which in turn will help redefine a 'new' North American gas market in the future," said Gordon Pickering, a director in Navigant's Energy Practice.

For more:
- see the report

Related Articles:
CO2 technology could change natural gas industry economics
Overwhelming optimism for natural gas future