“IEA predicts growth in natural gas demand in Asia and the Middle East to compensate for decline in other regions”

The International Energy Agency said that the growth in demand for natural gas in Asia and the Middle East will compensate for any decline in demand in any other regions during the current year, which means a continued shortage of supply in the market.

Bloomberg news agency quoted a report by the agency that represents the interests of oil-consuming countries as saying that natural gas consumption in China is expected to rise by more than 6%, and consumption in Asia as a whole will increase by about 3%, compared to a 5% decline in demand in Europe thanks to the expansion of the use of natural gas sources. Renewable energy to produce electricity.

Markets suffered from a severe shortage of natural gas supplies over the past year after Russia cut off most supplies to Europe due to the war on Ukraine. However, Europe succeeded in overcoming the crisis during the winter season, thanks to reduced consumption and increased dependence on liquefied natural gas imports from other regions such as the United States and the Middle East.

Despite this, the International Energy Agency believes that risks to the flow of supplies to Europe still exist as a result of competition from consumers in Asia, the possibility of a decline in supplies from Russia, and the possibility of exposure to severe heat waves in the summer or severe cold in the winter that lead to an increase in energy demand.

The agency said in its report that natural gas supplies in the global market will remain limited during the current year, and there is a wide and unusual state of uncertainty surrounding the market balance, adding that consumption in Asia will be a key element in the equation, especially with the recovery of the Chinese economy supported by the recovery of the industrial sector.

The agency expects China’s imports of liquefied natural gas to grow by 15% this year, while it will remain below 2021 levels. It also expects Indian demand for gas to increase by 4% after its decline as a result of high prices in 2022.

The Agency also expects an increase in gas consumption in the Middle East by 2%, especially in Saudi Arabia and Iran. In North America, the agency expects demand to decline by 2%, with a decline in gas consumption in electricity generation.