Gas demand is projected for solid growth in 2024, despite global uncertainty

Global gas demand will increase by 2.5% with 100 billion cubic metres.

The global gas demand is expected to recover in 2024, estimated to increase by 2.5% year-on-year or around 100 billion cubic metres despite price volatility from geopolitical risks and supply-side setbacks.

According to the International Energy Agency's Gas Market Report, the growth in demand will propelled by the winter temperatures and the easing of global prices.

Gas demand increased by 0.5% in 2023, with the growth in China, North America, and gas-rich countries in Africa and the Middle East being partly offset by declines in other regions.

China was the world’s largest LNG importer as the demand for natural gas increased by 7%, despite LNG imports below 2021 levels. The US, meanwhile, is the world’s largest LNG exporter with 80% of additional LNG supply in 2023.

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However, use of natural gas declined by 7%, the lowest level since 1995. The decline is attributed to the expansion of renewables and the availability of nuclear power over natural gas, which drives lower prices.

On the supply side, gas availability remained tight in 2023 due to LNG production falling short of expectations. Supplies for LNG output are projected to increase by 3.5% in 2024, though this is lower than the 8% growth rate from 2016-2020, due to delays in new liquefaction plants and accessibility of feedgas.

What is necessary is maintaining the momentum to recognise the importance of hydrogen, biogas, and biomethane in achieving climate goals.

“The global gas market is entering a new period as the world gradually emerges from an energy crisis that had profound impacts on both the supply and demand sides. We expect to see solid growth in global gas demand this year as prices have come down to relatively manageable levels,” Keisuke Sadamori, IEA Director of Energy Markets and Security, said.