Exchange traded funds that follow natural gas prices rallied more than 2% on Monday after the International Energy Agency said natural gas could be entering a “golden age.”
“The factors that drive natural gas demand and supply increasingly point to a future in which natural gas plays a greater role in the global energy mix,” according to the IEA report. “Global uncertainties afflicting the energy sector can be seen as opportunities for natural gas.”
The report outlines a scenario in which global use of gas rises by more than 50% from current levels and represents more than a quarter of global energy demand by 2035.
“We have seen remarkable developments in natural gas markets in recent months,” said IEA Executive Director Nobuo Tanaka in a press release. “There is a strong potential for gas to take on a larger role, but also for the global gas market to become more diversified and therefore improve energy security.”