IEA Reduces Forecast for Global Gas Demand Growth
The International Energy Agency (IEA) has revised downward its forecast for global gas demand growth between 2021 and 2025 due to weaker economic activity and less switching from coal or oil to gas.
In Nigeria, gas supply has been facing pressure from disruptions amidst increasing local demand. Consequently, price per kilogram has inched more than double to reflect a hot red inflation condition in the economy. For now, there is no respite in view as the case continues to worsen.
In its latest Gas Market Report released Tuesday, the IEA expects global gas demand to rise by a total of 140 billion cubic meters in the five-year period, less than half the amount previously forecast and smaller than the 170 bcm increase seen in 2021 alone. READ: IEA Increases Global Oil Demand Growth Outlook
The IEA expects global gas consumption to contract slightly in 2022 and grow slowly over the next three years. The slowdown in demand can be attributed to high prices and supply disruptions following Russia’s invasion of Ukraine, which also cast doubt on natural gas’ prospects in energy transitions, the IEA said.
Record-high gas prices are depressing demand and causing some gas users to switch to coal and oil, while sharp cuts in Russian gas flows to Europe are sparking worries over supplies ahead of winter, the agency noted. These developments are damaging natural gas’ reputation as a reliable and affordable energy source.
Only one-fifth of the decreased gas demand can be attributed to efficiency gains and substituting renewables for gas, which emphasizes the need for greater progress on clean energy transitions, according to the IEA. # IEA Reduces Forecast for Global Gas Demand Growth
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