Washington (Platts)--21May2007

World natural gas consumption will increase by an average of 1.9% a year
between 2004 and 2030, rising from 99.6 Tcf in 2004 to 129 Tcf in 2015 and
reaching 163.2 Tcf in 2030, the US Energy Information Administration said
Monday in its International Energy Outlook 2007.

     The agency said rising world oil prices after 2015 will increase natural
gas demand in the industrial and power sectors. That heightened demand, the
outlook said, would raise natural gas prices making coal more
cost-competitive, particularly in the power sector.

     The report said the industrial sector will remain the largest consumer of
natural gas globally, and will account for an estimated 43% of projected
consumption in 2030.

     The report also projected that coal will be the fastest-growing energy
source worldwide over the 2004-2030 forecast period, with global demand
increasing from 114.5 quadrillion Btu in 2004 to 199.1 quadrillion Btu in
2030, for an average annual growth rate of 2.2%. Coal's share of global energy
use, the report added, is expected to rise to 28% in 2030 from 26% in 2004.

     In addition, the EIA outlook said global net electricity generation would
grow by 85% over the forecast period, from 16,424 billion kWh in 2004 to
22,289 billion kWh in 2015 and 30,364 billion kWh in 2030.

     Coal and natural gas will remain the most important fuels for electricity
generation, the agency said, together accounting for 80% of the total
increment in world power generation over the outlook period.

     The report said nuclear generation will rise to 3,619 billion kWh in 2030
from 2,619 billion kWh in 2004, driven by higher fossil fuel prices, energy
security concerns, improved reactor designs and environmental concerns
associated with burning fossil fuels.

     The outlook projects that installed nuclear capacity will rise to 481 GW
in 2030 from 368 GW in 2004.

     Further, the agency said the use of hydroelectricity and other
"grid-connected" renewable energy sources is expected to continue to grow over
the forecast period by an average of 1.9% a year, spurred by higher fossil
fuel prices, primarily those of natural gas.

     Renewables' share of world energy consumption, the report said, is
expected to grow from 7% in 2004 to 8% in 2030.