Story perspectives

Global Gas Markets Face Tight Supply Amid Rising Demand

1/22/2025

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Summary

Story summary

The IEA reports that global natural gas markets will remain tight in 2025 due to rising demand and slow supply growth.
Global gas demand hit a record high in 2024, increasing by 2.8%, primarily driven by Asian markets.
The cessation of Russian gas transit via Ukraine on January 1, 2025, may increase EU LNG import needs without immediate supply risks.
Geopolitical tensions are causing price volatility, highlighting the need for enhanced international cooperation for gas supply security.
A permanent Working Party on Natural Gas Security has been established to improve data exchange and dialogue among stakeholders.

History

Historical Context

The current tightness in global natural gas markets echoes the 1970s energy crisis, where geopolitical tensions and supply disruptions led to soaring prices and demand shifts. Today's reliance on LNG, especially from Asia, highlights a continuing trend of energy security concerns amidst fluctuating geopolitical landscapes.

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Story summary

The IEA reports that global natural gas markets will remain tight in 2025 due to rising demand and slow supply growth.
Global gas demand hit a record high in 2024, increasing by 2.8%, primarily driven by Asian markets.
The cessation of Russian gas transit via Ukraine on January 1, 2025, may increase EU LNG import needs without immediate supply risks.
Geopolitical tensions are causing price volatility, highlighting the need for enhanced international cooperation for gas supply security.
A permanent Working Party on Natural Gas Security has been established to improve data exchange and dialogue among stakeholders.

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