World’s gas consumption is forecast to drop for the third time in seven years, even as LNG supply from producers in other regions helps offset losses in the Middle East, iea.org reports.
The impacts of the war in the Middle East continue to reshape the global natural gas market, with tighter supply and elevated prices weighing on demand in key markets, according to the IEA’s latest quarterly market report.
Global gas demand is expected to decline by 0.5% this year, the report forecasts, due primarily to lower gas use in the power and industrial sectors. This would mark the third time demand has contracted on an annual basis in seven years.
The Gas Market Report for the third quarter, published today, examines how markets have responded to the major disruptions to gas shipments through the Strait of Hormuz, previously the conduit for roughly 20% of the global supply of liquefied natural gas (LNG).
While the transit of LNG carriers through the Strait has been on the rise since the United States and Iran reached an interim agreement in mid-June to end hostilities and reopen the Strait, traffic remains well below pre-conflict levels and significant uncertainty surrounds the outlook for future trade flows. Natural gas prices in Asia and Europe have moderated from recent highs in March but remain well above 2025 levels.
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