Cepsa COO Juan Vera looks at future trends and how the role of gas will develop as renewable energy becomes a greater factor in supplies as well as focusing on Spain as a strategic hub
How do you see the global market for gas developing over the coming years?
As we set out in our research study Cepsa Energy Outlook 2030 (CEO 2030), natural gas demand is expected to grow by two per cent annually from 2015-2030, in turn becoming the fastest growing fossil fuel, and likely displacing coal as the second energy source. With regards to LNG, demand will likely double by 2030, the CEO shows.
Where do you think the greatest new levels of demand will come from? Will it come from nation states or from sectors such as transport?
According to the CEO 2030, gas demand is likely to continue to grow rapidly supported by the growth in infrastructure, economic growth, and the increasing use of gas in power generation and in transport. A forecast rise in electricity consumption over the next few years will trigger an increase in natural gas demand for power generation. Industry will come second as a driver, with China the country expected to attract over half of all new industrial gas demand. In general terms, growth in natural gas demand is envisaged to come from Asia, in particular China, and also by producing countries as they promote the use of cheaper, domestically- produced gas to meet their growing energy needs.
How does Cepsa anticipate dealing with this increase in demand?
In Spain, the demand for natural gas will also grow significantly in the coming years (by a forecast two per cent according to the CEO 2030). The main drivers behind this are expected to be: (i) a shift from power plants using domestic coal to natural gas (and also renewables); (ii) a recovery in industrial production; (iii) gas replacing oil for heating and steaming in the industrial sector.
Cepsa aims to maintain its role as a leader in the energy sector and to be committed to the sustainable development of the economy. We aim to offer our customers a complete offer - covering not just oil, but also natural gas and green power in the form of renewables. Cepsa aims to provide society with a competitive, diversified and reliable energy mix.
What role will gas play in the overall energy sector, particularly in relation to renewables?
Although there is a robust demand outlook for gas, some uncertainties on its role in the energy system beyond 2030 remain. On the one hand, natural gas is the lowest carbon emitting fossil fuel, but, on the other hand, gas may be regarded as a transition energy source for power generation. Its role will depend on the speed of progress in renewable energies to be able to provide a large scale alternative, the policy approach followed by governments worldwide, as well as on the development of technology.
What importance does Barcelona have for international markets in its hosting Gastech this year?
Barcelona, and more broadly Spain, has a strategic location for the international gas market. The country could eventually occupy a key position for Europe in the supply of piped gas, helping to diversify gas supply, as well as having the potential to become an important hub for the supply of LNG, as it already has regasification infrastructure in place.
What can the event bring to the global industry?
Gastech is one of the largest and most important gathering of professionals in the industry. This leading event represents a unique platform to share knowledge and discuss the latest developments which will shape the energy industry in the years to come. If there is one arena for doing business and keeping up-to-date on today’s trends in the sector then it is Gastech.
What is Cepsa aiming to achieve through its participation in the event?
Cepsa, as a global energy company which operates in an integrated manner at all stages of the hydrocarbon value chain, is an important player within the energy industry and we could not miss the opportunity to be at Gastech. We would like to make the most of this forum to share our experience, our vision of the future of energy, and to continue to improve and innovate to adapt to the needs of society.