Natural gas is well on its way to a bright future, according to a new report from the International Energy Agency (IEA) that projects China will more than double consumption over the next five years while lower prices from the unconventional gas revolution will continue to benefit the United States.

The report, Medium-Term Gas Market Report 2012, released at the World Gas Conference 2012, says China will become the third-largest gas importer behind Europe and Asia Oceania, driving a 2.7% average annual growth in global gas demand through 2017 (up from the 2.4% annual growth rate predicted in last year’s report).

During that period, North America will become a net exporter of LNG, while Japanese imports will continue to increase, although by how much will hinge on the country’s nuclear policies.

Medium-Term Gas Market Report 2012, part of a series of IEA medium-term market reports also featuring coal, oil and renewable energy, presents detailed forecasts for the next five years of sectoral demand by region plus supply and trade. An in-depth analysis addresses infrastructure investments in LNG and pipelines.

The release of the document comes a week after the IEA issued a special report, Golden Rules for a Golden Age of Gas, which looks at the environmental impacts of unconventional gas production and how those impacts are being - and might be - addressed over the next 25 years.

Van der Hoeven also noted that, “as gas competes against other energy sources in all market segments, notably in the power sector, pricing conditions are a key element to keep it competitive everywhere. This medium-term report aims to facilitate investor decisions by providing a timely, in-depth analysis of the current trends and what we expect to take place over the coming five years.”

While Medium-Term Gas Market Report 2012 sees growth for natural gas in most regions, low economic growth, relatively high gas prices and strong growth of renewable energies will limit demand in Europe. Successful and timely developments of new resources should lift gas demand in the Middle East, Africa and Asia.

The report identifies other future sources of supply, with most incremental gas production coming from the Former Soviet Union (FSU) and North America. Further growth in unconventional gas will come mostly from shale gas in North America plus tight gas and coalbed methane (CBM) production elsewhere. Shale gas developments in other regions are likely to be concentrated in China and Poland.

Canada is destined to be a key source of Liquid Natural Gas (LNG) to the Asian market. British Columbia has three major LNG export projects in development based in or near the coastal community of Kitimat that will serve the Asian market.

The B.C. government anticipates that development of the province’s abundant LNG potential could produce approximately $20 billion in new private sector investment and will create 800 new long-term jobs in LNG facilities and up to 9,000 more jobs during construction.

“British Columbia is in a foot race with countries such as Australia, Qatar and the United States who are interested in exporting LNG, so we are moving quickly,” said BC’s Minister of Energy and Mines Rich Coleman earlier this year.

“Our plans are designed to ensure B.C. accelerates the pace of development so we can secure new contracts and seize investment while such lucrative opportunities are available.”