The combination of the Covid-19 crisis and an exceptionally mild winter in the northern hemisphere have put global demand for natural gas on course for its most significant annual decline in history, Report informs, citing the
According to the IEA, global gas demand is expected to fall by 4%, or 150 billion cubic meters (bcm) – twice the size of the drop following the 2008 global financial crisis: “As of early June, all major gas markets worldwide are experiencing falls in demand or slumps in growth, according to the IEA’s latest annual market report Gas 2020. For the full year, more mature markets across Europe, North America and Asia are forecast to see the biggest drops, accounting for 75% of the total decline in gas demand in 2020.”
“Global gas demand is expected to recover in the next two years gradually, but this does not mean it will quickly go back to business. The Covid-19 crisis will have a lasting impact on future market developments, dampening growth rates, and increasing uncertainties,” the IEA said.
After 2021, most of the increase in demand takes place in emerging Asia, led by China and India, where gas benefits from strong policy support. In both countries, the industrial sector is the primary source of demand growth, making it highly dependent on the pace of the recovery in domestic and export markets for industrial goods. Repercussions from the Covid-19 crisis are set to result in 75 bcm of lost annual demand by 2025, which is the same amount as the increase in global demand in 2019.