Last year, global gas demand increased by 0.5 percent. “Solid growth” and price fluctuations are expected this year, the IEA says.
The International Energy Agency (IEA) expects demand for gas to increase this year, although tight supply could lead to price fluctuations. The IEA in Paris announced that global gas demand would increase by 2.5 percent. The reasons are colder winter weather than last year and, in view of lower prices, also increasing demand from industry.
Electricity generation is forecast to see only a modest increase in gas consumption, as higher consumption in Asia Pacific, North America and the Middle East is expected to be partially offset by lower demand in Europe.
A limited increase in global liquefied natural gas production is likely to slow demand growth in 2024, the IEA said. Due to delays in new liquefaction plants, an increase in liquefied gas supply is expected this year by 3.5 percent, which is less than in previous years. Growing demand and tight supply could contribute significantly to price fluctuations throughout the year.
“We expect solid growth in global gas demand this year as prices have fallen to relatively bearable levels,” said IEA energy market director Keisuke Sadamori. “However, the decisive factor will be how quickly this new demand can be met, especially since supply is tight and extensive new liquid gas capacities will only come online after 2024.”
According to the IEA, geopolitical uncertainties such as the wars in Ukraine and the Middle East are currently the greatest risk factor for the global gas markets.
Last year, global gas demand rose just 0.5 percent, as growth in China, North America and the gas-rich countries of Africa and the Middle East was partially offset by declines in other regions such as Europe.
Source: Stern
