Market Trends of City Gas Distribution Industry
This section covers the major market trends shaping the City Gas Distribution Market according to our research experts:
Power Sector to Dominate the Market
- Natural gas, as a cleaner fuel than coal and oil, has become a prevalent fuel for electricity generation. In the 1970s and 1980s, the popularity of coal-powered plants was higher due to its low operating cost and unavailability of an alternative source of power generation. However, due to economic and technological developments, the natural gas-fired powered plant has become popular since 1990.
- Globally, gas-fired power generation increased by nearly 4% in 2018, with the United States and China as the major contributors. In 2018, gas-fired power plant took significant turns of nearly 30% growth in China, decreased by 7% in Europe due to renewables generation, and it rose by 28% in South Korea.
- The United States electricity generation from natural gas has increased by nearly 13% in 2018, from 1295 billion kilowatt-hours in 2017 and is the largest source of electricity generation with 35% market share.
- Apart from existing natural gas power plants, India is planning to set up 24,000 MW of gas-based power plants, at an investment of INR 1 lakh crore. The addition of this project is expected to increase gas-based electricity generation in the country, and it would create an opportunity for the gas distribution company like GAIL, for natural gas supply.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific to Dominate the Market
- Asia-Pacific region is more focusing on the cleaner version of fuels rather than just focusing on crude oil and its products. With the highest demand for natural gas in domestic and industrial uses, the market is most significant among all others.
- Asia-Pacific is expected to account for nearly 1000 billion cubic metres (bcm) of natural gas consumption by 2025, with the combination of high energy demand growth and low penetration of gas during 2018. With the consideration of urbanization trends, along with ongoing air pollution stability developments, Asia-Pacific is expected to have a dominant market during the forecasting period.
- China is expected to have increase in merger and acquisition activities in the gas sector, especially with oil major and energy companies. China new policy to develop its downstream gas business allows foreign players to participate in gas business of cities, with population more than 50,000. The inclusion of foreign players is expected to create stiff competition with the domestic players.
- India on the other hand, is developing it city gas distribution market tremendously. From its 35 geographical areas during early 2000s, India during 2019 have access to city gas in more than 90 geographical areas and is preparing to have access to more than 220 geographical areas by 2029, which is expected to include nearly 70% of India's total population.
Get Analysis on Important Geographic Markets
Download PDF
