Southern African Natural Gas Advisory Service Service

Commercial Sector Applications

It is in the spheres of space heating and cooling, bulk food processing, refrigeration and the production of steam and hot water that natural gas is largely used in the commercial sector. In hospitals to generate electricity and provide steam, in hotels for space heating and cooking, in the food processing sector in bakeries; and, in commercial kitchens that natural gas is widely used in mature gas markets.

Typically such market use of natural gas will be around 55% for space heating, 20% for co-generation, 15% for hot water and 10% cooking although these levels can vary between countries depending on climate and other considerations.

The development of latest generation heating and ventilation gas powered systems for buildings is increasing the share that natural gas has of this market that has traditionally been dominated by electricity in some countries.  

Modern gas space cooling and dehumidification systems are becoming increasingly competitive especially when combined with whole building energy systems incorporating CHP and co-generation.  In most countries where natural gas is readily available, the commercial sector is forecast to continue to consume ever more natural gas. Tri-generation is now being deployed by ABSA in their office complex in Johannesburg.

In many deregulated energy markets combined electricity and natural gas utilities are also increasingly marketing integrated energy resource facilities to property owners and operators that involve the deployment of the advantages of natural gas.

Such demand side management methods often encourage the use of natural gas to cost effectively manage the use of energy during peak consumption periods of the day, week and season, both to the financial benefit of the consumer and the energy supply utility