Asia Pacific, Middle East to dominate global gas demand growth

The two regions will account for the 80% consumption increase.

Global gas demand growth in the next three years will be “geographically concentrated,” with the Asia Pacific region accounting for almost half of the gas consumption gains to 2025, followed by the Middle East at one-third.

In a report, the International Energy Agency (IEA) said that the two regions combined will be responsible for almost 80% of the increase.

The agency added that North America and Africa will provide “more modest contributions,” whilst consumption in Central and South America, and Eurasia is expected to “broadly stagnate.”

Europe’s gas consumption, meanwhile, is seen to decline more significantly.

READ MORE: IEA revises down global gas consumption forecast

However, the risks to the agency’s forecast, in the form of lower economic activity and resulting natural gas consumption, are heavily dependent on the state of the war.

“Beyond the threat of further potential gas supply disruptions, uncertainty relating to additional problems in commodity and manufacturing supply chains and further inflationary pressure on commodities could result in a situation of stagflation (low growth and rising prices),” the report read.

It added that the pandemic is still a risk factor, citing the return of lockdowns in China in the first half of 2022.

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