Global demand for gas has recovered this year, but supply remains limited, with relatively modest growth in liquefied natural gas (LNG) production, according to the International Energy Agency (IEA), highlighting that buyers are seeking to secure long-term contracts.
Gas demand is expected to increase by more than 2.5 percent this year, reaching 4,200 billion cubic meters, with a similar growth rate expected in 2025, the IEA estimated in its annual supply analysis.
Asian countries are the main source of demand, but industrial demand in Europe is also recovering, although it remains significantly below pre-crisis levels, they note.
New capacities, however, are still limited due to weak growth in liquefied natural gas (LNG) production, estimated at only two percent this year.
The growth rate is the lowest since 2020, the IEA emphasizes.
LNG has played a more significant role since the onset of the global energy crisis two years ago and is likely to be crucial in maintaining the balance between supply and demand globally, the agency speculates.
In 2025, LNG supply could accelerate significantly, with an estimated growth rate of just under six percent, thanks to the expected activation of several large projects, mainly in the second half of the year.
North America will account for approximately 85 percent of new capacities, while suppliers from Africa and Asia will account for the remainder.
Uncertainty due to questionable transit
A significant source of uncertainty ahead of this winter in the northern hemisphere will be the agency’s assessment of the transit of Russian gas through Ukraine, given the expiration of existing contracts at the end of the year.
