According to the Russian state-run gas company Gazprom, the share of gas in the global energy mix will reach a level similar to that of oil in 2035. The consumption of natural gas is expected to grow in absolute terms in the global energy mix until 2035, primarily in the power generation and transportation sectors.
As for Gazprom, the proximity of the large European and Chinese market will be beneficial: the demand of natural gas in Europe is forecast to grow by 5% while its indigenous gas production is decreasing, particularly in Germany. In China, gas demand grew by 15% in 2017, while gas imports soared by 30%. Gazprom estimates that China will account for 30% of the global LNG market growth until 2035.
The company estimates that the use of gas in thermal power generation is likely to continue since the internal rate of return for CCGT projects averages 14-15%. One key driver for Gazprom's future will be the development of compressed natural gas (CNG) on the European market since it is 48% cheaper than gasoline and 31% cheaper than diesel.