2024-04-24 19:03:43
ALGIERS – Global demand for gas is expected to increase by 2%, stimulated in particular by increasingly growing needs and the resumption of economic activity, indicated the Gas Exporting Countries Forum (GECF) in a new report.
“In 2024, global gas demand is expected to increase by around 2%, driven by stabilizing falling prices. Globally, gas consumption in the power generation, industrial and residential sectors will experience an increase. The drop in global gas prices has improved its competitiveness in electricity production, thus facilitating an increased transition from coal to gas”, it is underlined in the annual report on the gas market 2024 ( Annual Gas Market Report-AGMR) published on the Forum website.
This publication, now in its 5th edition, offers an in-depth review and analysis of the main trends and developments in the global gas market over the past year as well as the short-term outlook.
In this context, the GECF reported that global gas consumption recovered in 2023 compared to the period of the pandemic and that all the main consuming sectors showed higher demand, ensuring that gas maintained its 22% share in the global electricity production mix.
The electricity industry remains the leading consumer with a 44% share of global natural gas production, according to the GECF.
According to the same report, global gas production, which had recorded an increase in 2023 of around 0.8% to reach 4.08 billion m3, is on the path to stronger growth in 2024 in order to meet with ever-increasing demand.
In this regard, the GECF specified that the growth in global gas consumption increased by 1% in 2023 to reach 4,090 billion m3 in 2023, with positive trends observed in many regions, notably citing consumption in China. (+7%) and India (+13%), while demand from Europe saw a drop of 6%, impacted in part by a mild climate.
According to the same report, global energy policies have become more favorable to natural gas, in particular following COP28 which recognized that “gas plays a facilitating role in the energy transition and ensures energy security”, which which implies, it is noted in the document, “new opportunities for the promotion of natural gas”.
At the same time, the report noted significant upstream oil and gas investments that have exceeded pre-pandemic levels, increasing by 12% to reach $587 billion globally in 2023 .
“These investments are driven by natural gas markets that have begun to stabilize in 2023, following a volatile period characterized by record spot prices in 2020 during the Covid-19 pandemic and unprecedented high prices in 2021 and 2022 in a context of post-pandemic recovery and energy crisis in Europe”, is explained in the document.
Regarding global trade in liquefied natural gas (LNG), this market continued to grow in 2023, supported by the emergence of new importers and the commissioning of significant regasification capacities, underlined the GECF.
Asia-Pacific is driving the increase in global LNG imports, led by China which remains the main importer, according to the report mentioning that LNG imports increased by 2.5% to reach 408 million tonnes (Mt) in 2023, exceeding the 400 Mt mark.
In 2024, global LNG imports are expected to further grow by 2 to 2.5%, driven mainly by stronger gas demand in the Asia-Pacific region, the same source said.
1714028255
#GECF #expects #growth #global #demand
