Gas suppliers are watching with some trepidation the
data coming out on the fate of investments in gas turbines to generate
electricity. The electricity sector was projected to be the biggest buyer of
gas as coal fired power plants are gradually retired.
In 2016, investments have been just steady and not rising, with bulk of it
taking place in countries where gas is cheaper. In Europe, although 4 GW of new
capacity came online based on investment decisions made years ago, retirements
of gas-power plants exceeded the amount of new capacity that was given the
green light for construction.
The incremental demand for gas worldwide therefore may not come from the electricity sector anymore as renewable energy gets cheaper, leaving demand to emanate from other sources, including emerging economies. The biggest uncertainty today is how and when gas demand is going to ramp up globally.
The incremental demand for gas worldwide therefore may not come from the electricity sector anymore as renewable energy gets cheaper, leaving demand to emanate from other sources, including emerging economies. The biggest uncertainty today is how and when gas demand is going to ramp up globally.
No comments:
Post a Comment