Global demand for energy rising: Rauf Alam

Karachi, July 10, 2016 (PPI-OT):The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Sunday lauded the efforts of the government to overcome energy scarcity. It asked the government to hasten efforts to overcome shortfall which has compromised growth since long. Pakistan should keep an eye on the energy market as the global energy demand is to grow 28 percent by 2035 while natural gas will become major fuel within few years, said Abdul Rauf Alam, President FPCCI.

He said that in the next nineteen years the world will need to produce over 32 percent more energy as compare to 2015 to satisfy the thirst of the consumers. Coal and oil have been the dominant fuel in the global energy mix but global warming and environmental issue are changing situation in favour of natural gas, the cleanest fossil fuel, he added.

Abdul Rauf Alam said that natural gas is the leading fuel source for the future which will have one-third of the market in two decades. He said that roughly 70 percent of natural gas is exported through pipelines with the remaining 30 percent is shipped as LNG however some experts are of the view that LNG trade to overtake pipeline trade in a decade. Global energy demand grew at a Compound Annual Growth Rate (CAGR) of 2.3 percent during 2000 to 2015 while natural gas demand grew at 2.6 percent, over that same period.

LNG has grown by 6.3 pc while current level in LNG trade stands at 250 million tonnes per annum worth more than $120 billion. It has been anticipated to grow at a 4.1 percent CAGR through 2035, significantly faster than the energy market as a whole at 1.4 percent. The current LNG market is being limited by supply constraints and global liquefaction capacity stands at 300 MTPA while 2035 annual traded volume could be as high as 550 MTPA, said Alam.

For more information, contact:
M. A. Lodhi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Shahra-e-Firdousi,
Karachi-75600, Pakistan
Tel: +92-21-35873691, 93-94
Fax: +92-21-35874332
Email: info@fpcci.com.pk
URL: www.fpcci.com.pk