World gas consumption has experienced a historic drop of 1.6% in 2022, as a result of the war in Ukraine and the interruptions in the supply of Russian gas to Europe, according to preliminary data from Cedigaz, the international association of information on the gas.
“The worst natural gas and energy crisis in history”
Mainly of fossil origin, world gas consumption dropped to 4,000 trillion m3 “in a context of unprecedented energy crisis and high inflation,” Cedigaz said in a press release on May 15.
This fall can be described as historic according to the association after a record increase of 4.5% in 2021 and a fall of 2% in 2020, a particular year marked by the Covid-19 pandemic. But 2022 will continue to be the year of “the worst natural gas and energy crisis in history due to the Russian invasion of Ukraine,” estimates Cedigaz, which has around 100 members in 40 countries.
Significant declines were also recorded in the CIS countries and Ukraine (-4.6%), as well as in Asia-Oceania (-1.6%), in contrast to increases in North America and the Middle East. Among the reasons for the decline: a mild winter that reduced “residential-commercial gas demand” in the northern hemisphere; the slowdown in the Chinese economy and rising gas prices, which dampened demand in the industry and led to a drive to save energy.
LNG boom
While Russian gas played a “dominant role” in European supply, pipeline exports to Europe “plunged to the lowest level seen since the mid-1980s, resulting in a loss of 77 billion m3 i.e. the equivalent of 20% of EU gas consumption”. in 2021”, details Cedigaz.
This new situation has led the continent to diversify its supplies, thanks to gaseous gas imports from Norway and “a rapid increase in the power of LNG supplies” (liquefied natural gas) from the United States, transported by ship. LNG made up 32% of European gas supply in 2022, compared to 19% in 2021 and 2020.
In this context, world gas production remained stable. “The strong loss in Russian gas sales was offset by strong production growth” in the Middle East (+14 billion m3) and especially in the United States (+41 billion m3). The share of the United States in world gas production has fallen from 24% to 25% between 2021 and 2022, Russia from 18% to 15.5%.
Net international LNG flows will have “surpassed pipeline flows for the first time in 2022”, and the LNG share will increase to 51% (46% in 2021). But the “notable expansion in LNG trade (+4.7%)” failed to “compensate for a historic huge contraction (-12.7%) in pipeline trade.” In total, international gas trade fell by 4.7% to 1,016 million m3.
Source: BFM TV
