IEA forecasts tight supply and record gas demand in 2025
OSLO, Oct 3 (Reuters) - World gas demand will reach an all-time high in 2025 driven by growth in Asia, but delays to new liquefied natural gas (LNG) production will curb supply, the International Energy Agency (IEA) said on Thursday.
WHY IT'S IMPORTANT
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Gas demand, especially in Europe, fell sharply in 2022-23 as prices soared following the loss of large volumes of Russian pipeline gas supply due to the war in Ukraine.
This increased the demand for globally-traded LNG and put Europe in direct competition with buyers in Asia.
"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 Keisuke Sadamori, director of energy markets and security at the IEA.
"But the balance between demand and supply trends is fragile, with clear risks of future volatility," Sadamori added in a statement to mark the publication of the IEA's "Global Gas Security Review 2024".
BY THE NUMBERS
The IEA expects global gas demand for the full year 2024 to grow by just over 100 billion cubic metres (bcm), or more than 2.5%, to a new all-time high of 4,200 bcm, the report showed.
In 2025, demand would grow another 100 bcm, or 2.3%, to a fresh high, driven predominately by economic expansion in fast-growing Asian markets.
Gas demand in OECD Europe is forecast to decline by 2% this year due to lower use in the power sector, but to rise 1% in 2025 as the building, commercial and industrial sectors use more gas.
At the same time, global LNG supply is expected to grow at its slowest rate since 2020 of just 2%, or 10 bcm.
LNG supply growth is set to accelerate to 30 bcm, or nearly 6% in 2024, as several large LNG projects, particularly in the United States, come online.
(Reporting by Nora Buli; editing by Barbara Lewis)