IEA: Global natural gas demand set for slow growth in coming years

In the latest Gas Market Report, the International Energy Agency (IEA) warned that global natural gas demand growth is likely to contract slightly in 2022 and will continue it sluggish trend over the next three years.

The dire gas consumption outlook is based on the fact that Russia's war in Ukraine has pushed up prices and fuelled fears of further supply disruptions.

Key quotes

Today's record-high gas prices are depressing demand and causing some gas users to switch to coal and oil, while recent sharp cuts in Russian gas flows to Europe are raising alarms about supplies ahead of the winter.

The turmoil is damaging natural gas' reputation as a reliable and affordable energy source, casting doubts about the role it was expected to play in helping developing economies meet rising energy demand and transition away from more carbon-intensive fuels.

The recent developments have led to a considerable downward revision of gas' growth prospects.

Global gas demand is set to rise by a total of 140 billion cubic metres (bcm) between 2021 and 2025, less than half the amount forecast previously and smaller than the 170 bcm increase seen in 2021 alone.