Demand for natural gas will top other fossil fuels in the long term on the back of rising number of electric vehicles and as new emission standards could see new vessels adopting alternative fuels, according to Goldman Sachs.
This will result in a higher allocation of growth capital in the years ahead, the investment bank said in a note released on Wednesday.
Demand for gas is expected to rise 1.7 percent per year in the period to 2035, four times faster than in case of oil, based on an average from the International Energy Agency and the Energy Information Administration.
“We believe they may diverge in the future as the market digests the robust increase in Chinese gas demand over the 2017-2018 winter,” Goldman Sachs analysts said. Read More