Global demand is expected to decrease by 0.5% in 2022 and increase by 1.7% by 2025
The International Energy Agency has revised down the global demand for natural gas until 2025. The information is contained in the quarterly report released this Tuesday (5.Jul.2022). Here’s the intact of the study, in English (4 MB).
According to the IEA, the war in Ukraine is the main reason for the review. With the rise in gas prices caused by the conflict, some countries have turned to other sources of energy, such as coal and oil.
“The turmoil is undermining natural gas’ reputation as a reliable and affordable energy source, casting doubt on the role it was expected to play in helping developing economies meet growing energy demand and the transition away from more fuels. carbon intensivesays the agency in communiqué.
The expectation is that the global demand for natural gas will show a reduction of 0.5% in 2022 and improve in 2023 to reach a progression of 1.7% in 2025. This year, the forecast is that consumption increase by 140 billion cubic meters (bcm) between 2021 and 2025, less than half of what was previously predicted for that period. In 2021, the increase was 170 bcm.
The Asia-Pacific region is expected to be the largest responsible for gas demand by 2025, with 60% going to industry. High prices, however, may reflect lower economic growth in the region.
The EU’s (European Union) commitment to reduce Russian natural gas imports will also have an impact on global demand. According to the report, Russian gas exports to the bloc’s member countries are expected to fall by 55% by 2025, with the possibility of falling by more than 75%.
According to the IEA, the review reflects the result of the economy and not the replacement of natural gas with renewable energy.
#Agency #downgrades #natural #gas #consumption