Global natural gas demand is expected to experience slower growth to 2026 after peaking in mature markets such as Europe and North America in 2021, according to a report by the International Energy Agency (IEA).
The IEA’s annual medium-term gas market outlook predicts that global gas demand is on course to increase by an average of 1.6% per year from 2022 to 2026, which is slower than the average annual rise of 2.5% between 2017 and 2021.
Russia’s attack on Ukraine last year resulted in lower supplies of pipeline gas to Europe from Russia, prompting a race for alternative energy supplies.
Overall gas demand from mature markets in the Asia Pacific region, Europe, and North America peaked in 2021 and is forecast to decline by 1% annually to 2026, according to the report.
The accelerated roll-out of renewables and improved energy efficiency are also driving the downward trend for natural gas in mature markets.
For Europe, the loss of pipeline gas from Russia forced governments to seek alternative solutions to maintain energy security, the IEA said.