World demand for natural gas is expected to experience the biggest annual fall in its history, with an estimated 4% decline for the year 2020, twice as much as the fall following the 2008 financial crisis, the International Energy Agency (IEA) said on Wednesday 10 June in its new report on the gas market.
The IEA points to two factors to explain this drop: the Covid-19 pandemic, which led to containment measures and a drop in the level of activity, and the drop in heating demand due to a particularly mild winter in the northern hemisphere.
Natural gas has so far experienced a less severe impact than oil and coal, but it is far from immune from the current crisis”, said IEA Executive Director Fatih Birol.
While all major gas markets are experiencing a decline in demand or, at best, slow growth, since the beginning of June, Europe has been the most affected market, with a decline that is currently 7% compared to the same period in 2019, the report further states.
Finally, although a rebound in natural gas demand is expected in 2021, the IEA report does not foresee a rapid return to the pre-crisis trajectory of the coronavirus crisis.
To consult the report: https://bit.ly/2zl9D89 (Original version in French by Damien Genicot)