BAKU, Azerbaijan, April 24. The latest report from the International Energy Agency reveals a notable uptick in natural gas consumption, surging by approximately 2 percent or nearly 40 billion cubic meters year-on-year throughout the 2023/24 winter across global markets, Trend reports.
This surge in demand was chiefly propelled by heightened gas utilization in the power and industrial sectors. However, the Northern Hemisphere witnessed an unexpectedly mild winter, dampening the need for space heating in key markets.
In the US, residential and commercial gas usage experienced a sharp decline of nearly 8 percent compared to the previous year, while Europe saw a modest decrease of around 2 percent, albeit from already diminished levels seen in the 2022/23 winter. Following the gas supply disruptions of 2022, the natural gas market underwent a gradual rebalancing throughout 2023, maintaining a relatively tranquil state during the subsequent winter. Mild weather conditions, coupled with enhanced supply fundamentals, contributed to the market's stability.
During the first quarter of 2024, spot gas prices in Asian and European markets reverted to pre-crisis levels, with Henry Hub prices in the US plunging to multi-decade lows. Despite the overall mildness of the 2023/24 winter, sporadic cold spells and spikes in gas demand underscored the critical importance of gas supply flexibility for ensuring energy security.
Looking ahead, the forecast anticipates a 2.3-percent increase in natural gas demand for 2024, primarily propelled by the rapid expansion of Asian markets.