Short-take: IEA predicts tight gas supply and record demand in 2025

The International Energy Agency (IEA), on Thursday, said that the world's gas demand would reach a record high in 2025, driven by Asia. However, delays in new liquefied gas (LNG), production, will limit supply.

Why it's Important Gas demand in Europe fell dramatically in 2022-23, as prices rose after the Russian pipeline gas supply was cut off due to the conflict in Ukraine.

The demand for LNG traded globally increased and Europe was in direct competition with Asian buyers.

KEY QUOTES

Keisuke Sadamori, Director of Energy Markets and Security at the IEA said: "The growth in global gas consumption this year and next reflects a gradual recovery from a worldwide energy crisis which hit markets hard."

Sadamori said in a press release to celebrate the publication of IEA’s “Global Gas Security Review 2024”.

By the Numbers

The IEA estimates that global gas demand will grow by just under 100 billion cubic meters (bcm), which is more than 2.5%. This would result in a new record of 4,200 bcm.

Demand will grow by another 100 billion cubic meters, or 2.3% in 2025. This is mainly due to the economic expansion of fast-growing Asian countries.

The OECD expects gas demand to fall by 2% in Europe this year, due to a decrease in power use, but rise by 1% in 2025, as more gas is used in the commercial, industrial and building sectors.

The global LNG supply will grow at the slowest pace since 2020, of only 2% or 10 bcm.

The growth of LNG is expected to reach 30 bcm or almost 6% by 2024 as a result of several large LNG projects in the United States. (Reporting and editing by Barbara Lewis; Nora Buli)

(source: Reuters)