The global gas engine market size is projected to reach USD 5.3 billion by 2024, from an estimated USD 4.0 billion in 2019, at a CAGR of 5.7% during the forecast period. The increasing demand for clean and renewable power generation and implementation of stricter emission regulations across the globe are major drivers for the gas engine market.
The power generation application segment is expected to be the largest segment of the gas engine industry.
Gas engines are used mainly for power generation, by manufacturing plants, commercial buildings, public buildings, and utilities for on-site power generation. The governments of developing nations around the world are spending heavily on the construction of new gas-fired power plants while those in developed economies are investing in their aging gas-fired power plants. The demand for new gas-fired power plants due to the increasing energy needs is expected to drive the power generation application segment of the Gas Engines Market during the forecast period.
Natural gas could play a key role in alleviating energy poverty and creating new jobs across the globe in the post-Covid recovery phase.
The potential to create new jobs at a lower cost and with less environmental impact is one of the brilliant features of natural gas that makes it a suitable energy source to cope with the harmful effects of the pandemic and revitalize the economies, writes Dr. Amin Shokri, Energy Analyst, Gas Market Analysis Department, GECF (Gas Exporting Countries Forum) Secretariat.
A study conducted by PwC (July 2017) indicates that the oil and gas industry contributed to around 8% of the US GDP in 2015, and direct and indirect employment in the oil and gas sector accounted for approximately 10 million jobs.
Several countries have outlined their plans to place natural gas at the heart of their economic recovery plans. For instance, Australia announced a gas-oriented post-pandemic economic recovery plan, which includes replacing coal-fired power plants with natural gas-fired plants and incentivizing natural gas production.
SUSTAINABLE NATURAL GAS SUPPLY:
Unprecedented events such as virus outbreaks or financial crises could cause an imbalance in energy supply and demand. Like other sectors, these low probability events significantly impact the energy sector, as we observed during the virus outbreak.
In the early months of the pandemic, demand dropped due to declining economic activities and restrictions; consequently, oil and natural gas prices dropped sharply.
A while later, when the restrictions relaxed and economic activities resumed, the demand started to recover. At the same time, the supply couldn’t outpace the demand due to the lack of investment in the previous months. On the imbalanced market condition, extreme weather is enough to trigger instability in the energy markets. This is exactly what the global markets experienced in East Asia and the US at the end of 2020 and the beginning of 2021.
Extreme colds in the winter and extremely hot weather in some regions in summer imposed instability and price shocks to the energy markets in 2021.
The natural gas market’s response to the shocks during the pandemic demonstrates its resilience during times of uncertainty. In addition, LNG flexibility has added more value to the already positive attributes of natural gas during market shocks.
As a result, the delivered volume of LNG in 2020 rose by around 1.5% to stand at 360 metric tons (Mt) despite all the shipping restrictions, which indicates the reliability of natural gas during unfavorable conditions.
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