LONDON, July 5 (Reuters) – A rebound in global gas demand through 2024 after a record fall last year is set to derail the world on track to the climate goal of reaching zero emissions net by 2050, the International Energy Agency (IEA) said on Monday.
More than 190 countries have signed the Paris agreement to limit global warming to 1.5 degrees Celsius, which will require a dramatic reduction in the use of fossil fuels such as coal and gas.
“The demand for natural gas is expected to rebound strongly in 2021 and will continue to increase if governments do not implement strong policies to bring the world on the path to net zero emissions by mid-century,” said the ‘IEA in its latest gas outlook.
Gas demand in 2021 is expected to increase 3.6% as global economies recover from a record drop in 2020 due to restrictions aimed at limiting the spread of the novel coronavirus.
From 2022 to 2024, demand growth is expected to average 1.7% per year, meaning that gas demand would be too high to meet the IEA’s roadmap to achieve global net zero emissions. by 2050.
The IEA in May released a path for the energy sector to meet the net zero emissions goal and said investors should not fund new oil, gas and coal supply projects.
But new demand could be met by projects already approved or under development before the pandemic, according to the latest report.
Global gas prices hit multi-year highs over the past month, with high temperatures driving demand for power generation in the northern hemisphere for air conditioning and some regions like Asia looking to increase inventories ahead of the winter.
The report says that Dutch benchmark gas prices in Europe are expected to average $ 9.5 per million British thermal units (MBtu) in 2021, their highest level since 2013, while spot prices of the LNG in Asia is expected to average $ 11 / MBtu, the highest since 2014.
In Monday’s report, the IEA said the gas industry should step up efforts to reduce emissions, including tackling methane leaks. (Reporting by Susanna Twidale; Editing by Jan Harvey)