 So welcome everybody, my name is Noah Henderson and I'm the annual gas manager here at the energy data center. And today let's take a closer look at natural gas. So this presentation will be divided into three sections similar to the other presentations, starting a look at the gas trends, how natural gas fits into the energy mix onto some key concepts, and then finishing looking at the natural gas questionnaire and the correct reporting standards. So starting with the trends. In the last 40 years, natural gas has demand and production has very much expanded. And it has, it has almost tripled in the last 40 years. And over that period, natural gas was the second largest contributor to global energy growth only after coal production expanded earliest and most quickly in North America and former Soviet Union. And as you can see on the slide, this trend has continued with USA and Russia, being the two largest producers in the world, making up just over 40% of global production. For demand, it comprises just under 25% of total energy supply and natural gas has many technical characteristics that make it a very useful and a very flexible fuel that can be used in many different sectors. Looking at trade, giving the changing regional supply and demand dynamics, an increased focus has been placed on moving gas internationally to match excess supply with demand. However, to do this, it requires a substantial investment in infrastructure, whether that be pipelines to move gaseous gas across land, or LNG infrastructure liquefied natural gas to move it across large bodies of water. LNG trade has slowly been increasing its share of total gas trade, and it is now at around 40%. A couple of the main importers of gas are Japan for LNG and Germany for gas through pipelines. We must also note that both liquefied natural gas and natural gas in its gaseous state are the exact same commodity, and they should not be confused with the various individual oil or coal products. However, we do report LNG separately due to the specialized kind of infrastructure that is required to be traded with LNG. On to emissions, natural gas benefits from being the fossil fuel with the lowest emissions per energy unit burned when compared with coal and oil. It emits around 40 to 50% less CO2 than coal and around 30% less than oil per energy unit burned. And for this reason, there are some people that consider natural gas a key bridging fuel as we transition to cleaner energy systems. Here is another look at how gas comprises total energy supply, and it can vary greatly on a country by country basis. On the diagram on the left here, you can see that large countries who have little production such as India and China, it comprises a small amount of their total energy supply around 6% or 7%. Well, large producing countries such as USA and Russia comprises a much larger share with the USA being 32% and Russia natural gas forming 54% of total energy supply. On the graphs on the right, you can see some of the different uses, the different sectors where natural gas is used, and you can also see that it is used all across the world and every corner of the globe. Next on to the key concepts. In some ways, natural gas is similar to oil, which we'll be looking at later today, since it is the same organic source material and it forms in comparable geological conditions, but it tends to form in higher pressure and temperature ranges. Natural gas can be defined as a combustible mixture of hydrocarbon gases that contains a very high concentration of methane, usually over 90%, but there isn't any sort of strict, strict definition or strict level at which the methane needs to be in concentration of. As was mentioned, other combustible fuels like coolant oil are classified according to their compositions and gross calorific values. However, natural gas is treated just as a single product. And various natural gas mixtures can have gross calorific values that typically span between 37 to 42 megajoules per cubic meter. It is also possible for gases from other fuels to be mixed into the natural gas mix, such as blast furnace gas coming from the processing of coal. Finally, since the quantities of gas can be measured in volumes, we must define the pressure and temperature conditions to measure that. For international data collection at the IA, we use the standard conditions, which corresponds to 15 degrees Celsius and one atmosphere. Here's a look at the overall natural gas balance. It follows the same standards as most other energy balances you have seen. We start with the supply with the production inputs from other sources and trade. We are able to derive the inland consumption calculated. Then we have the statistical difference bridging supply and demand where we can see it is consumed in many different sectors. And the statistical difference is the difference between the consumption calculated from the supply and the consumption observed from the demand and efforts should be made to have statistical difference as low as possible so the relationship is clear between supply and demand. Having a closer look at production, natural gas can be extracted from three different methods or three different locations from oil fields from gas fields or coal mines. And the raw gas that comes out of a well includes a number of other hydrocarbons and contaminants along with the methane. And these need to be removed through a series of chemical and thermal processes to make the gas suitable for distribution and use. Some of the gas can be flared or vented when it can't be processed or transported to a treatment plan. And the gas can also be re-injected to enhance the production of the field. At this step, the concentration of methane in the raw gas is not very high, could be around 70%, and after the gas is treated and processed, the concentration of methane can rise as high as 99%. The purification process consists of separating methane from other hydrocarbons such as crude oil or natural gas liquids, NGLs, and the removal of impurities such as condensates, water vapor, CO2, and sulfur. Before purification, we refer to it as wet gas because it is liquid rich that has a high concentration of NGLs and condensate, and as a result has a relatively high energy content per volume. And after purification, we have dry marketable production gas, which is the definition we use at the IA for all of the gas we track in our energy balance. Dry marketable production gas can further be separated into associated gas for gas produced at an oil field, non-associated gas for gas produced at gas fields, and colliery gas for gas produced at coal mines. Here's a look at the supply chain. Our data collection methodology covers all of these stages of the supply chain, starting with the production here. We also collect data on infrastructure that connects production with consumption. This includes transmission and distribution grids, storage facilities, and LNG terminals, and then finally we have natural gas being consumed in many different sectors. Of course, trade is critical to connect the imports and exports through pipeline or through LNG. And here we can see the different arrows that show the relationships between all these different elements of the supply chain. Next, we're going to take a closer look at a few of these elements individually. So starting with trade, as I've mentioned previously, it can be traded through pipelines in gaseous gas form, or it can be traded in its liquid LNG form across long oceans. With pipelines, they are very cost-effective way to move gas across land or even for short relatively shallow distances underwater. And there are many interstate and local pipelines that exist to move gas over these short distances. You can see on the image on the left, the blue lines. However, the larger major pipelines that cross international borders tend to be much less common. These are the larger brown lines on the image. In the past year, due to the Russian invasion of Ukraine, there has been a changing dynamic in natural gas trade in which countries have realized the dangers from an energy security perspective of relying too heavily on one single trade partner, particularly specifically, all of Europe previously relied very heavily on Russia for natural gas, and this has contributed to the growth of LNG trade and the growing complexity of gas trade internationally. So looking at natural gas, pipelines are useful when land routes are available, but when natural gas needs to be moved across large bodies of water, it creates a much more difficult technical and economic challenge. The solution is to cool gas down to the temperature at which it becomes a liquid, which is negative 162 degrees Celsius. This liquefied natural gas increases the amount of natural gas energy that can be stored in a given volume by 600 times. As a result, LNG can be more cost effectively transported in special ships over long ocean routes. However, this process for safely cooling, loading, shipping, and offloading the gas requires a lot of capital to accomplish. The three main components of this LNG process are liquefaction plants to cool the gas gas down and turn it into a liquid, LNG carriers, which are specialized ships necessary to safely transport and re-gasification terminals to turn LNG back into its gaseous state. The diagram on the right displays the key trend of growing LNG trade. And in the next slide, we also see another interesting graph that shows growing LNG trade, and this trend is expected to continue in the foreseeable future. Stocks are also a critical aspect of the natural gas balance. The gas of the fuel is a source of potential energy and it can be stored to be used in a different time or a different place. Specifically for natural gas, storage is used to shift a constant level of available production to match seasonal demand fluctuations. As you can see on the slide, the demand fluctuation displays OECD Europe, which is countries in the northern hemisphere, typically show a clear demand peak in the winter months when natural gas is used more heavily for heating, and then demand trough in the summer months when it is not as necessary. To store gas, there are some above ground options, but storing significant amounts of gas tends to rely on underground storage as the most economical solution. And the most of this storage happens in depleted gas reservoirs, which require less upfront cushion gas, which cushion gas creates the baseline volume and pressure to make regular storage injection and withdrawal feasible. Overall, stocks provide the required seasonal flexibility resulting from a relatively flat supply, and a combination of price signals and regulations drive the operation of these facilities and the stock builds or the stock draws. On to demand. Here are the many different sectors which natural gas is used. Let's take a bit of a closer look at a few of these. So looking at transformation, this includes the demand to convert gas into a different energy form. This could be electricity, gasworks, gas, etc. The energy sector includes the consumption to support the operations within energy, for example, natural gas burned for oil and gas extraction or in a refinery. The main difference is that the gas is burned, but it isn't transformed into a different commodity. And then non energies refers to natural gas not used for its energy content, but use as a feedstock produce a non energy hydrocarbon based raw material. So this could be fertilizers or plastics for example. These are examples of different transformations that occur with natural gas. In yellow we have it being transformed into electricity and heat. In the red we have some transformations involving coal's gaseous byproducts. For example, it being transformed into blast furnace gas at a blast furnace. And in green we have natural gas being transformed into oil products at a gas to liquids plan. We'll be now looking at the final section of our presentation with natural gas questionnaire. So here's the structure of our questionnaire within our data collection framework and the energy data center we ask national administrations to fill a questionnaire about natural gas on a yearly basis. And the questionnaire is designed to capture information to all the different steps of the supply chain that we've just been looking at for the past several minutes. The structure of the questionnaire is composed of six table and their relative related sub tables as you can see on the slide. So we have received and collected all of the questionnaires, we have to go through a validation process to ensure that the data is comparable across time and between countries. And this involves making sure that the proper methodological standards were followed when filling in the questionnaire. And this involves looking at within the gas questionnaire for consistency, and also comparing it with the other questionnaires where there are specific flows that are related. For example, in table one inland consumption needs to be exactly equal to inland demand reported in table two, and looking between questionnaires biogas is for blending that is reported in the renewables questionnaire needs to be related to receipts from other sources renewables in the natural gas questionnaire. Now here is a look at what the questionnaires look at and here's table one supply. Where's your reminder we ask only for dry marketable production of gas and production excludes any gas that is vented or flared, but we do ask for that data separately as a memo. For trade, we must note that we only count gas that crosses the physical boundary of the reporting country, and we do not include any transit or re exports with trade data. Here's a look at data in million cubic meters in terajoules, and we ask for the average gross calorific value reporting average net calorific values is optional, because if it is not reported, they can be estimated as being 90% of average gross calorific values. Here's a look at table two a with consumption. Here we have the transformation and energy sectors, and we only asked for data in terajoules, because we can use the gross calorific value reported from in table one to convert terajoules into million cubic meters. We also have a flow for losses to report any losses during transport and distribution. Let's look at the other side of the consumption where we have total final consumption, and we split reporting into energy use and non energy use, as I mentioned the difference previously. I also want to take a closer look at transformation sector as this can be a confusing aspect to report. There are different types of plants. There are electricity plants, heat plants in combined heat and power plants, and these are further separated into two different activities. There are main activity producers, which are entities or companies whose sole or main purpose is to produce and sell electricity to heat. And there are auto producers, which are entities that produce electricity or heat as a byproduct of another primary product or activity. There could be a steel plant, which their primary activity is producing steel, but as a byproduct of that production, they also produce electricity and heat. So to properly report this, and main activity producers, all natural gas is reported in the transformation sector and table two a, but for auto producers. Heat should only be reported in table two a if that heat is sold onwards, and it is not used for its primary activity. This can be a bit confusing and complicated so please ask questions or please send it as an email if you'd like further clarification. So here is a look at table three for imports. It is important to note that we have to report the ultimate origin or destination of the trade partner so for imports, we have to report where the gas is produced the ultimate origin. And for exports, we should be reporting where the gas is ultimately consumed for the destination. And as reminder, transit trade is not included. There are a few limitations to our gas reporting. Firstly, we treat gas as a single product when in fact they're often gases with high or low calorific values used in the market. The exports table table four looks essentially identical to this imports table. Now the last slide finishing off here. There are a few limitations to our gas reporting. Firstly, we treat gas as a single product when in fact they're often gases with high or low calorific values used in the gas system. So we ask countries to report the average calorific values for their gas. Second, for gas there is a changing dynamic of trade and going complexity and spot purchases, which has made it increasingly difficult to not report transit trade in the trade data. And the final problem we sometimes encounter are issues around measuring gas volumes, because at the IEA we use the standard conditions, which is 15 degrees Celsius in one atmosphere. But sometimes gas can be reported in other pressures and temperatures, which requires us to convert it to make the data comparable. Thank you very much. Here are some various resources that you guys might find helpful and I'm happy to take any questions.