Monday 29 January 2024

Global gas demand set for 2.5% growth in 2024

Global gas demand is anticipated to experience a 2.5% growth in 2024, equivalent to 100 billion cubic metres, according to the latest Gas Market Report from the International Energy Agency (IEA).

The rise is attributed to colder winter weather and declining prices, fostering increased consumption in emerging economies.

However, geopolitical uncertainties and supply-side challenges pose risks, potentially leading to renewed price volatility.

In 2023, global gas demand saw a 0.5% increase, driven by growth in China, North America and gas-rich regions in Africa and the Middle East, according to the report.

Yet, declines in other areas, particularly Europe, where natural gas consumption fell by 7%, tempered the overall growth.

Factors contributing to this decline included the rapid expansion of renewables, increased availability of nuclear power, and pandemic-induced restrictions loosening, allowing economic activities to resume.

For 2024, the IEA projects a recovery in global gas demand, primarily fuelled by expectations of colder winter temperatures compared to the unusually mild conditions experienced in 2023.

Lower natural gas prices, following record highs in 2022, further support this resurgence.

While remaining above historical averages, prices are expected to stimulate growth in price-sensitive industrial sectors, although only marginal growth is anticipated in gas use for power generation.