Gas glut to last 10 years, hitting renewables -IEA

Tue Nov 9, 2010 10:43am GMT

(Corrects year in final paragraph from 2010 to 2011)

LONDON Nov 9 (Reuters) - The global gas glut is likely to last until 2020, dampening investment in renewable technologies, the International Energy Agency's chief economist told Reuters.

"The gas glut will be with us 10 more years," Fatih Birol told Reuters in an interview.

"So it means there may be unused gas and the cheaper gas prices will put addtional pressure on renewable energies especially in the United States and Europe."

Cheap gas makes more expensive low-carbon technologies less attractive for investors, unless governments offer large subsidies to encourage spending on less economic green energy production.

The IEA said in its World Energy Outlook published on Tuesday that excess gas supply capacity is set to grow from 130 billion cubic metres (bcm) in 2009 to over 200 bcm in 2011. [ID:nWLA7499]

(Reporting by Muriel Boselli, writing by Daniel Fineren)

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