Apr 18, 2025
The IEA anticipates that the growth of global gas demand will decelerate by 2025.
Global gas demand returned to structural growth in 2024, especially in Europe and North America, but the International Energy Agency predicts this trend will slow in 2025, with growth anticipated at about 1.5% due to tight supply and economic uncertainties.
In the 2024/25 heating season, Asian gas demand growth fell behind due to high liquefied natural gas (LNG) spot prices, a milder winter in China, and weaker economic conditions. Geopolitical tensions and limited supply increases from LNG producers have kept global gas markets tight and prices unstable.
Storage facilities and reserve mechanisms were crucial for meeting winter demand. In Europe and the U.S., there was a significant year-on-year increase in storage withdrawals, fulfilling a large portion of gas consumption. Japan utilized its Strategic Buffer LNG mechanism to secure monthly cargoes in peak winter, underscoring the significance of storage for energy security.
Global LNG supply grew only 2% during the 2024/25 heating season but is expected to increase by 5% in 2025. North America will lead this growth with projects like Plaquemines LNG and Corpus Christi Stage 3, while Russia's Arctic LNG 2 project is excluded from forecasts due to sanctions.
Europe is projected to drive global LNG demand in 2025, with imports expected to rise by 25% after a decline in 2024, while Asia, particularly China, may see a decrease in LNG imports as Europe competes more effectively for flexible cargoes.
The report also notes early advancements in trading low-emission gases like biomethane and bio-LNG. Countries like Japan and Ukraine are exploring new supply routes, emphasizing the need for international cooperation and policy frameworks to scale these sustainable options in the global gas market.
In the 2024/25 heating season, Asian gas demand growth fell behind due to high liquefied natural gas (LNG) spot prices, a milder winter in China, and weaker economic conditions. Geopolitical tensions and limited supply increases from LNG producers have kept global gas markets tight and prices unstable.
Storage facilities and reserve mechanisms were crucial for meeting winter demand. In Europe and the U.S., there was a significant year-on-year increase in storage withdrawals, fulfilling a large portion of gas consumption. Japan utilized its Strategic Buffer LNG mechanism to secure monthly cargoes in peak winter, underscoring the significance of storage for energy security.
Global LNG supply grew only 2% during the 2024/25 heating season but is expected to increase by 5% in 2025. North America will lead this growth with projects like Plaquemines LNG and Corpus Christi Stage 3, while Russia's Arctic LNG 2 project is excluded from forecasts due to sanctions.
Europe is projected to drive global LNG demand in 2025, with imports expected to rise by 25% after a decline in 2024, while Asia, particularly China, may see a decrease in LNG imports as Europe competes more effectively for flexible cargoes.
The report also notes early advancements in trading low-emission gases like biomethane and bio-LNG. Countries like Japan and Ukraine are exploring new supply routes, emphasizing the need for international cooperation and policy frameworks to scale these sustainable options in the global gas market.