BAKU, Azerbaijan, October 10. The growth in global gas demand is anticipated to decelerate significantly, decreasing by nearly a third, transitioning from an average annual rate of 2.5 percent during 2017-2021 to 1.6 percent in 2022-2026, Trend reports.
According to the International Energy Agency (IEA), in 2023, it is expected that natural gas consumption will remain relatively stable, as the rising demand in Asia Pacific and the Middle East is nearly balanced out by declines in Europe, Central America, and South America.
"Faster-growing Asia Pacific markets and gas-rich countries in Africa and the Middle East are set to drive growth in gas demand. China alone accounts for almost half of the increase in global gas demand over the forecast period, with the power sector, industrial production and city gas networks the major consumers. Strong LNG supply at the end of the forecast period is set to ease market fundamentals and unlock some price sensitive demand in developing Asian markets that have the infrastructure in place," the report said.
Global gas demand is forecasted to resume moderate growth in 2024, primarily propelled by Asia Pacific and the Middle East, the agency noted.
Furthermore, the growth in demand is projected to strengthen in 2025-26, bolstered by increased capacity additions for LNG liquefaction, surpassing historical averages, the IEA added.
"In the Middle East, production growth in Iran, Israel and Saudi Arabia is expected to support the expansion of gas-intensive industries and higher gas burn in the power sector. Africa’s gas demand growth is driven by its rapidly rising population, improving energy access and economic growth. Eurasian natural gas demand trends towards stagnation, with the region’s gas demand standing 2 percent above its 2021 level by 2026," the outlook said.