BAKU, Azerbaijan, July 18. The International Energy Agency (IEA) forecasts a moderation in gas demand growth for the latter half of 2024, projecting a full-year increase of 2.5 percent to just over 100 bcm, Trend reports.
After grappling with the aftermath of the 2022 supply shock and subsequent rebalancing in 2023, the gas sector saw robust growth in the first half of 2024, the agency noted. Global gas demand surged by 3 percent year-on-year during this period, exceeding the historical average growth rate of 2 percent observed from 2010 to 2020.
Despite this buoyant expansion, the recovery remains precarious, the IEA warns. Global LNG production faltered in the second quarter, exacerbated by geopolitical tensions that fueled volatility in prices. Although gas prices initially dropped to pre-crisis levels early in 2024, they have since rebounded across major markets, reflecting tightening supply-demand dynamics.
Looking ahead, the IEA expects that further growth will be primarily driven by burgeoning Asian markets, which were pivotal in boosting global gas demand in the first half of the year. Specifically, preliminary data indicates that Asia accounted for approximately 60 percent of the global demand increase, with notable expansions seen in China and India, where demand grew by over 10 percent year-on-year.
Meanwhile, the industry emerged as the primary driver of global gas demand growth in early 2024, supported by the economic strides of rapidly developing Asian economies. In contrast, gas use in the power sector experienced more modest gains of 2 percent year-on-year, as robust increases in North America and Eurasia were tempered by reduced gas-fired power generation in Europe. Meanwhile, demand in the residential and commercial sectors grew by 1 percent year-on-year, influenced by unusually warm temperatures in the first quarter.