Global gas demand growth is expected to surge in 2024 due to
colder winter conditions and lower prices, the International Energy
Agency’s (IEA) latest report on Friday showed, while warning of
renewed price volatility amid geopolitical uncertainties,
Azernews reports.
“In 2023, global gas demand rose by just 0.5%, as growth in
China, North America and gas-rich countries in Africa and the
Middle East was partially offset by declines in other regions,”
said the Paris-based energy agency in its latest Gas Market
Report.
According to the report, following the loosening of COVID-19
restrictions and the revival of economic activity, China regained
its position as the world’s largest LNG importer, with an increase
in its natural gas demand rate of 7%.
Meanwhile, natural gas consumption in Europe fell by 7%,
reaching its lowest level since 1995. The report said the rise of
renewables and increased nuclear power available in Europe and
mature Asian markets contributed to a decline in natural gas
demand, leading to lower prices.
The report predicts a growth of 2.5%, or 100 billion cubic
meters (bcm), in the global demand for gas this year.
“Expected colder winter weather in 2024, compared with the
unusually mild temperatures experienced in 2023, is likely to bring
increasing demand for space heating in residential and commercial
sectors,” it added.
“Natural gas prices have fallen sharply following the record
highs seen in 2022, which is also supporting the recovery in gas
demand,” it added.
The report said tight conditions are forecast for supplies in
2024, similar to last year, with a limited increase in global LNG
output expected to restrain demand growth, especially for Europe
and the mature Asian markets.
LNG supplies are projected to increase by 3.5% this year,
compared to the 8% growth rate seen between 2016 and 2020. Delays
in new liquefaction plants and challenges with feedgas availability
at existing projects could push back supply growth to 2025.
Geopolitical uncertainties are the biggest risk factor for
global gas markets in 2024, the report said. “Russia’s invasion of
Ukraine, heightened tensions in the Middle East, and concerns over
deliberate interference with critical infrastructure such as
pipelines all have the potential to generate further
volatility.”
Commenting on the report, Keisuke Sadamori, IEA director of
energy markets and security, said: “We expect to see solid growth
in global gas demand this year as prices have come down to
relatively manageable levels. But the speed at which this new
demand can be met will be critical, particularly as supplies are
tight and substantial new LNG capacity will only come online after
2024.”
—
Follow us on Twitter
@AzerNewsAz
Read More: Int. Energy Agency predicts stronger global gas demand growth in 2024 amid