Global Natural Gas Demand Term Papers

The highest growth rates in natural gas demand are projected for the developing countries around the world, with overall demand projected for these nations at approximately 5% per year until 2015. The developing nations in Asia, which includes India China, Indonesia, and Malaysia, are expected to have the highest global rate of increase in demand at 8% per year. In these developing nations, the primary use of natural gas is electricity generation. There are also infrastructure projects underway to use natural gas to displace the oil that is currently used for home heating and cooking purposes in major cities in order reduce pollution. At the current time, however, there remain significant infrastructure difficulties in many parts of Asia, with insufficient pipelines to carry the necessary amounts of natural gas to meet demand. At the current time, more than 50% of the ongoing pipeline construction is taking place in Asia and South America although these regions represent less than 15% of the current demand for natural gas. The largest of these projects involves linking the gas producing and the gas consuming nations of the Pacific Rim, and would include Australia, New Zealand, Japan, China, Taiwan, Korea and Russia.

In terms of the largest importers and exporters of natural gas, the developing nations are the largest exporters and the industrialized nations are the largest importers. The industrialized nations such as Australia and the United States that have significant natural gas reserves are able to meet their domestic needs and have sufficient surplus to also export some natural gas. The United States is also a major importer of natural gas, however, which is largely due to its relationship with Canada and access to the Canadian natural gas reserves.

Japan is the second largest consumer of natural gas after the United States and the EU. Because of the relatively small amount of indigenous natural gas reserves in Japan, the majority of its natural gas must be imported. At the same time, Japan is a highly industrialized nation that has a significant demand for energy of all types. In addition, because of Japan’s island geographic situation, its natural gas imports are in the form of LNG, which is the best method to transport natural gas by ship.

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