Global Gas Demand Expected to Rise by Over 100 Billion Cubic Meters
In a recent analysis, it has been projected that global gas demand will increase by more than 100 billion cubic meters or 2.5 percent this year. This growth is primarily being driven by the expanding markets in Asia.
Middle East and Africa Gas Needs to Rise by 3% Annually
The International Energy Agency’s latest report states that the combined gas needs for the Middle East region and Africa are expected to rise by 3 percent annually until 2024.
Significant Growth in Global Gas Demand
The analysis reveals that global demand for gas saw a 3 percent increase in the first half of this year compared to the same period last year. This growth surpasses the historical average expansion rate of 2 percent between 2010 and 2020.
Natural Gas: A Cleaner Energy Source
Natural gas plays a vital role in power generation, industrial processes, and heating. As the world transitions to cleaner energy sources, natural gas is considered a cleaner-burning fuel compared to coal or oil.
Asia Leads the Way in Gas Demand Growth
The International Energy Agency noted that Asia witnessed an estimated 8 percent year-on-year demand growth for natural gas in the first half of this year. China and India recorded double-digit growth rates during the same period.
Industrial Sector Driving Global Gas Demand
Almost 65 percent of global demand growth for natural gas is attributed to the industrial sector, particularly in fast-growing Asian markets. The combined industrial gas consumption in key regions increased by 6 percent year-on-year.
Challenges in LNG Supply Growth
Despite the increase in global gas demand, the supply growth of liquefied natural gas (LNG) only marginally increased by 2 percent in the first quarter of this year. Unexpected outages and feed gas supply issues led to a 0.5 percent contraction in the second quarter.
Future Outlook for LNG Supply
The IEA anticipates that LNG supply growth will accelerate in the second half of 2024, with new liquefaction capacity coming online. The US is expected to lead in providing new export capacity as existing plants expand and new plants begin operations.