40% increase in gas prices expected by 2014
Gas prices are set to rocket in the next three years as demand peaks before levelling out as production exceeds demand.
That is according to new research by global strategy consultancy AT Kearney, which reveals that worldwide gas prices could increase by as much as 40% by 2014.
According to the research this spike will then be followed by falling prices and overcapacity, as well as growing pressure on business models of up- and midstream gas companies.
Developments in the international and European gas markets and global demand for gas and liquefied natural gas (LNG) will, the research claims, make 2015 a 'watershed' for gas markets.
The work found gas is becoming ever more important as an energy source at the global level, with an annual growth rate of 1.7%.
However, gas consumption within Europe will, according to AT Kearney, gain just 0.4% per year.
AT Kearney energy practice partner, Richard Forrest, said: "Over the past years, the European gas market has become incredibly dynamic owing to the changes in supply and demand.
"During the course of the economic crisis, not only did the level of gas consumption nosedive, but the origin of the gas also underwent massive changes and Europe began to move ever closer to the international gas markets."