BAKU, Azerbaijan, August 27. The International Gas Union (IGU) warns that current investment levels in natural gas supply are insufficient to meet the projected demand through 2030, Trend reports.
In its 2024 Global Gas Report, the IGU highlights that while gas demand remains robust - driven by economic development, improving living standards in the developing world, and rising energy use in developed countries - investment in production capacity and infrastructure is lagging behind.
According to the IGU, the gas consumption trend from 2021 to 2024 shows a growth rate of 0.7%, contrasting with the demand decline projected in scenarios from the International Energy Agency (IEA) and Rystad Energy. A longer-term view, spanning 2014 to 2024, indicates an even higher growth rate of 2.0%, further diverging from more conservative energy outlooks.
If the modest growth trend from 2021 to 2024 continues through 2030 without any significant new production capacity, the IGU projects a supply gap of approximately 927 bcm, or 22%. This gap could widen to around 1,300 bcm (29%) if the stronger growth trend from 2014 to 2024 persists. These figures underscore the urgent need for increased investment in gas production and infrastructure to prevent significant supply shortfalls.
As the world navigates a period of high energy uncertainty in 2024, the IGU emphasizes the importance of prudent policy-making that reconciles scenario assumptions with current trends. Such policies will be crucial in ensuring timely investments in supply resources, balancing the need for growth and development with long-term sustainability goals, and maintaining secure, reliable, and affordable energy systems while reducing emissions.