Global gas demand grew by an estimated 3% yoy in the first half of 2024, with consumption set to reach an all-time high of 4200 bcm this year.
After the gas supply crisis of 2022 and the gradual rebalancing in 2023, natural gas markets are back on a clear expansion trajectory.
With both China and India displaying double-digit growth rates (up by 10% yoy in H1 2024), Asia is the single most important driver behind the recovery in global gas demand, accounting for over 60% of the increment. in addition, colder weather boosted gas demand in Eurasia (up by near 5% yoy), while record high gas burn in the power sector supported overall gas demand in North America (growing by almost 2% yoy).
In contrast with other markets, European gas consumption continued to decline in H1 2024, primarily due to collapsing gas-to-power demand (down by almost 20%) amidst the rapid expansion of renewables.
In terms of sectors, industry is emerging as the key driver behind global gas demand, accounting for nearly two-thirds of growth in H1 2024. part of this is still supported by recovery, especially in Europe and certain emerging Asian markets, where industrial gas demand collapsed during the 2022 gas crisis.
Source: Greg Molnar (LinkedIn)
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