-
IEA: Global Natural Gas Demand Set for New Record Highs
Amid a normalization of natural gas prices, global gas demand is picking up this year at a stronger pace than in the past two years and is set for a record high in 2024 and 2025, the International Energy Agency (IEA) said in a new report on Thursday.
After the supply and price shock of 2022 and 2023, which weighed on natural gas demand, consumption is picking up pace this year and is set to rise by over 2.5% in 2024, or by just over 100 billion cubic meters (bcm). As a result, natural gas demand is set to reach a new record-high of 4,200 bcm in 2024, mostly thanks to growth in the Asia Pacific region, the IEA said in its annual Global Gas Security Review.
Asia Pacific is expected to account for nearly 45% of incremental global gas demand this year. The primary growth drivers are industry and energy use, contributing more than half of demand growth.
Moreover, Europe’s industrial gas demand is recovering as prices normalized and is also contributing to demand growth, even though it remains well below its pre-crisis levels.
Next year, we will see another all-time high in global natural gas demand as consumption is expected to rise by another 2.3% (or nearly 100 bcm) in 2025. Similarly to 2024, growth is largely supported by Asia, which alone is expected to account for over half of incremental gas demand.
Supply of natural gas remains tight, and geopolitical uncertainties are adding volatility to natural gas markets, according to the IEA.
“The growth we’re seeing in global gas demand this year and next reflects the gradual recovery from a global energy crisis that hit markets hard,” said IEA Director of Energy Markets and Security Keisuke Sadamori.
“But the balance between demand and supply trends is fragile, with clear risks of future volatility.”
Share This
