According to the latest quarterly report from the International Energy Agency (IEA), global gas markets are likely to remain tight in 2025, with demand growing and supply increasing more slowly than before the Covid-19 pandemic and the energy crisis.
Global gas demand is set to grow by 2.8% in 2024 (above the average growth rate of 2% between 2010 and 2020), driven by Asia. Supply, meanwhile, remained tight, limited by below-average growth in liquefied natural gas (LNG) production and extreme weather conditions.
Although the halt of Russian gas transit via Ukraine on 31 December (see EUROPE 13551/13) does not pose an immediate risk to the EU, according to the report, it could nevertheless further increase Europe’s need for LNG imports, as well as the vulnerability of countries such as Moldova.
Geopolitical tensions and price volatility persist, underlining the need for “greater international cooperation to enhance gas supply security”.
As a result of tightening market fundamentals, the IEA expects global gas demand growth to slow to below 2% by 2025.
To see the International Energy Agency report, go to https://aeur.eu/f/f5a (Original version in French by Pauline Denys)