global natural gas consumption reached unprecedented levels in 2024, with demand expected to surge even further in 2025, according to a recent report by the International Energy Agency (IEA). the agency predicts that markets will remain “tense” this year, driven by a combination of rising demand and constrained supply.
The world consumed 115 billion cubic meters more natural gas in 2024 compared to 2023, marking a 2.8% increase. this growth rate significantly surpasses the average annual increase of 2% observed between 2010 and 2020. Preliminary data from the IEA’s quarterly gas market report estimates global gas consumption at 4,200 billion cubic meters for 2024.
Natural gas played a pivotal role in meeting global energy needs, accounting for ”around 40% of the increase in global energy demand,” a higher share than any other fuel. The IEA highlights that gas is increasingly replacing oil and petroleum products in sectors such as long-distance road transportation and power generation. This shift is partly due to the fact that gas combustion emits fewer CO2 emissions compared to coal and oil.
Asia Drives Demand Growth
Table of Contents
The IEA projects that gas demand will continue to rise in 2025, primarily fueled by the rapid expansion of Asian markets. However, the agency warns that “the global gas balance remains fragile, with supply remaining tight and geopolitical tensions continuing to fuel price volatility.”
One important development is the cessation of Russian gas transit through Ukraine, which took effect on january 1, 2025. While this is not expected to pose an immediate risk to the European Union’s supply security, it could increase the region’s reliance on liquefied natural gas (LNG) imports, further tightening market fundamentals.
Europe’s LNG Landscape
Europe has been heavily dependent on LNG since the onset of the war in Ukraine in 2022, which disrupted traditional Russian gas supplies delivered via pipelines. Despite a 18% decline in European LNG imports in 2024, the United States remains the continent’s leading supplier. Meanwhile, Russia’s LNG exports to Europe increased by 17%, primarily from the Siberian Yamal LNG mega-field.Belgium, France, and Spain were the primary destinations for Russian LNG, accounting for 85% of Europe’s total imports from Russia in 2024.
Key Takeaways
The table below summarizes the key trends and data points from the IEA’s report:
| Metric | 2024 Data | 2025 Projections |
|——————————–|————————————|————————————|
| Global Gas Consumption | 4,200 billion m3 | Further increase expected |
| Year-on-Year Growth | 2.8% (115 billion m3) | Driven by Asian markets |
| European LNG Imports | declined by 18% | Increased reliance on LNG likely |
| Russian LNG Exports to Europe | increased by 17% | Continued growth anticipated |
As the global gas market navigates these challenges, the IEA’s insights underscore the delicate balance between growing demand and constrained supply. For more detailed analysis, explore the IEA’s gas market reports.
Stay informed about the latest developments in global energy markets by following the IEA’s data and statistics.
Headline:
Gas Markets on Edge: Unprecedented demand and Tight Supply in 2024, IEA Reports
Introduction:
Join World Today News as we delve into the latest insights on global natural gas consumption with Dr. Amina Al-Kaysi, an esteemed energy economist and specialist in natural gas markets. In this interview,Dr. Al-Kaysi discusses the remarkable growth in natural gas consumption in 2024, according to the International Energy Agency (IEA), and the challenging market dynamics expected in 2025.
Asia Drives Demand Growth
WTN: Dr. Al-kaysi, thank you for joining us today. let’s start with the significant increase in natural gas consumption we’ve seen. Can you provide some context for this growth?
Dr.Al-Kaysi: Certainly! The rapid expansion of Asian markets has been the primary driver behind this increase.The IEA projects that gas demand will continue to rise in 2025, fueled by this region’s growing economies and increasing energy demands.
WTN: That’s fascinating. However, the IEA warns that the global gas balance remains fragile. Can you elaborate on the supply-side constraints and geopolitical tensions they mentioned?
Dr. Al-Kaysi: Indeed, the global gas market faces several challenges. On the supply side,production has struggled to keep pace with demand,leading to tight fundamentals. Geopolitical tensions, such as those surrounding the cessation of Russian gas transit through Ukraine, further complicate the situation, driving price volatility.
Europe’s Liquefied Natural Gas (LNG) Landscape
WTN: Speaking of Russia, how has Europe’s LNG landscape evolved, given the disruptions in pipeline supplies?
Dr. Al-Kaysi: Europe has become heavily dependent on LNG as the onset of the war in Ukraine in 2022. While LNG imports declined by 18% in 2024,the United States remains Europe’s leading supplier. Interestingly, Russia’s LNG exports to Europe increased by 17%, with Belgium, France, and Spain being the primary destinations.
Key Takeaways and Market Outlook
WTN: Let’s summarize the key trends and projections from the IEA’s report. What stands out to you?
Dr.Al-Kaysi: The moast striking trend is undoubtedly the unprecedented increase in global gas consumption in 2024, driven mainly by Asia. Looking ahead, we can expect further increases in demand, predominantly from Asian markets. However, given the ongoing supply constraints and geopolitical uncertainties, markets are likely to remain tense.
WTN: Dr. Al-Kaysi,thank you for providing your expert insights on the global natural gas market. Your analysis has undoubtedly given our readers a deeper understanding of the complex dynamics at play.
Dr. Al-Kaysi: You’re very welcome. It’s always a pleasure to share my viewpoint on these critical energy issues.
