Natural gas demand poised for long-term growth
The Gazprom Board of Directors took note of the information concerning the impacts of the events of 2020 on the long-term outlook for the global energy market.
The most significant development of the year, including in the energy market, has been the new coronavirus pandemic. At the same time, the pandemic's impact on the global gas market has been quite limited. According to Gazprom's preliminary estimates, the global demand for gas in 2020 fell by about 2 per cent, while other fossil fuels are showing greater decline in consumption.
The demand for natural gas is poised to grow in the long term. By 2040, worldwide gas consumption is expected to rise by 1.3 trillion cubic meters and exceed 5.3 trillion cubic meters.
In 2020, the amount of gas produced in Europe totaled some 220 billion cubic meters, a nearly 7 per cent drop versus last year. This trend will continue for the long term.
In China, gas demand has kept rising despite the pandemic-related restrictions. Preliminary estimates show that this country's gas consumption in 2020 stands at about 325 billion cubic meters, up by 6 per cent against 2019. In the long term, China's gas consumption is expected to accelerate further.
As environmental issues are becoming more and more relevant in the energy market, oil and gas majors continue to reshape their strategies by developing business areas related to natural gas.
Gazprom makes systematic efforts to strengthen its positions by expanding its resource base, building new infrastructure to provide stable supplies, diversifying export routes, and enhancing its product portfolio.
The meeting participants pointed out that the events of 2020 that changed the current conditions in the global energy market are unlikely to make a tangible impact on the long-term outlook. The main reason for this is the uniqueness of natural gas as an energy source that can provide both energy security and sustainable development on a global scale.
The Board of Directors also reviewed the issue of the strategic targets of Gazprom (the Gazprom Group).