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|China/India's Demand for Gas to Grow Much Less If Economy Slowdown|
|= IEEJ's outlook forecasts =|
The Institute of Energy Economics, Japan (IEEJ) said in its "Energy Outlook 2014, World and Asia" that growth in demand for natural gas in China and India will be much less than expected, by 44.8% and 38.3%, respectively, if the economy of the two countries slows down, and that the price for natural gas will be cut by more or less 5% compared to the figure so far forecasted due to the drop in demand.|
IEEJ's previous reports said that the world's demand for natural gas would grow to 5.88 Tcm in 2040 as the reference case, up 70% from 3.47 Tcm in 2013, and that most of the growth would be in Asia, especially in China and India, as a locomotive for the growth.
However, the recent political and economic changes in China and India that might become risks for economy slowdown could, according to the latest issue of IEEJ's outlook, lead to much less future growth in demand for natural gas, i.e. from the firmerly-forecasted 337 Tcm in 2040 to 186 Tcm in China, and from 162 Tcm in 2040 to 100 Tcm in India.
The worst-hit by the possible drop in gas demand would be Gazprom that has been diverting its main target of gas sales especially to China. In this case, the Russian energy giant will be obliged to essentially restructure its sales strategy.
|last modified : Mon 27 Oct, 2014 [10:49]|