According to the International Energy Agency (IEA), the world’s demand for natural gas is expected to rise rapidly this year and continue rising into 2024, owing in part to increased U.S. export capacity. According to the IEA’s latest quarterly Gas Market Report, global demand is expected to increase by 3.6 percent in 2021 before slowing to roughly 1.7 percent in 2022-2024.
Gas demand is rebounding, indicating that the world economy is recovering from the pandemic’s shock and that gas is continuing to replace more emissions-intensive fuels. However, more excellent policies are needed to put global gas demand on a path to achieve net-zero emissions by 2050 while promoting economic growth. Measures to ensure that gas is used more efficiently are among them.The gas industry needs to scale up its efforts to transition to cleaner, lower-carbon gases and act promptly and efficiently to reduce unnecessary methane emissions. In addition, investments in U.S. production, which is utilized to complement liquefied natural gas (LNG) export capacity, are expected to contribute to global gas supply growth.
The International Energy Agency team said, “The contribution of LNG to ensuring flexible and secure supplies, especially from the United States…accounts for the large majority of additional LNG capacity to be commissioned in the coming three years.” As a result, gas demand is expected to increase by 7% by 2024 than pre-Covid levels in 2019.
According to the report, this year’s consumption growth “primarily reflects the economic recovery from the pandemic,” according to the report. Beyond 2021, economic activity and replacing other more polluting fuels such as coal and oil in sectors such as electricity generation, industry, and transportation are expected to drive demand in equal amounts.The Asia Pacific area is expected to account for over half of the rise in gas consumption between 2020 and 2024. According to analysts, the industrial sector is also playing a “critical role in medium-term gas demand increase.”