Tuesday 10 October 2023
Slower growth ahead for global gas demand
Global demand for natural gas is set to grow at a slower rate in the coming years, according to the International Energy Agency (IEA).
The IEA's Gas 2023 Medium-Term Market Report indicates that global gas demand will increase by an average of 1.6% per year between 2022 and 2026, down from 2.5% per year between 2017 and 2021.
This slowdown is attributed to declining consumption in mature markets, particularly in Asia Pacific, Europe and North America, driven by increased renewable energy adoption and improved energy efficiency.
China is expected to be a major driver of gas demand growth.
Additionally, the report suggests that the expansion of liquefied natural gas (LNG) capacity, particularly in the US, will ease market dynamics and unlock price-sensitive demand by 2025 and 2026.
Keisuke Sadamori, IEA Director of Energy Markets and Security, said: "After their heyday between 2011 and 2021, the world’s gas markets have entered a new and more uncertain period that is likely to be characterised by slower growth and higher volatility - and could lead to a peak in global demand by the end of this decade."
