Global gas demand growth to slow through 2026, IEA says

Global gas demand is expected to grow more slowly through 2026, as it peaked in mature regions such as Europe and North America in 2021. Demand is forecast to increase by an average of 1.6 percent a year between 2022 and 2026, compared with average annual growth of 2.5 percent between 2017 and 2021. The International Energy Agency (IEA) said this in its outlook released today.

Total gas demand in mature markets in the Asia-Pacific region—Australia, Japan, Korea, New Zealand and Singapore—as well as in Europe and North America peaked in 2021. The forecast predicts that demand in these markets will fall by one percent a year through 2026. The main reasons are the accelerated rollout of renewable energy and improvements in energy efficiency.

The IEA noted that Russia’s invasion of Ukraine last year reduced Russian pipeline gas supplies to Europe. This was the main reason European governments had to seek alternative ways to maintain energy security.

„After a decade of strong growth between 2011 and 2021, global gas markets have entered a new and more uncertain period, likely to be marked by slower growth and greater volatility—and one that could see global demand peak by the end of this decade,“ said Keisuke Sadamori, the IEA’s Director of Energy Markets and Security.

Consumption in mature gas markets is expected to decline, but will grow in countries that account for nearly half of global gas consumption. These include emerging markets in Asia, as well as gas-rich countries in the Middle East and Africa.

China alone is expected to account for almost half of total global gas demand growth between 2022 and 2026. It will use gas in industry, power generation and urban areas, the report said.