IEA: Demand for natural gas will rise further in 2025

The International Energy Agency said that global demand for natural gas reached its highest level ever in 2024, and it is expected to expand further in 2025, mainly supported by some fast-growing markets in Asia.

The agency added in its report “Gas Market for the First Quarter of 2025” that natural gas consumption increased during 2024 by 2.8%, or 115 billion cubic meters, to reach about 4.212 trillion cubic meters of gas, compared to 4.097 trillion cubic meters of gas in 2023, as this relatively strong growth is mainly due to the Asia-Pacific region, which accounted for nearly 45 percent of the increasing demand for gas in 2024 against the backdrop of continued economic expansion.

The agency says that natural gas met about 40% of the increase in global energy demand in 2024 – a larger share than any other fuel – and natural gas continues to displace oil and oil products in various sectors. The use of gas for industry and to meet the needs of the energy sector itself was the main driver behind global trends, meeting nearly 45% of demand growth. The agency added that although the cessation of Russian gas pipelines through Ukraine on January 1, 2025 does not pose an imminent risk to the security of supply for the European Union, it could increase LNG import requirements and tighten market fundamentals in 2025, as growth in LNG supplies is set to partially offset the decline in Russian gas pipeline deliveries to Europe.