The Asian region saw a 60% increase in global gas demand in the first half of 2024 led by China and India and a surge in use by industry, according to the International Energy Agency’s latest quarterly gas report.

The IEA said in its latest report released July 16 that nearly 65% of global demand growth in the first half of the year came from higher industrial use of gas, largely driven by the economic growth of rapidly expanding Asian markets.

China continued to drive the region’s gas demand growth, as its gas consumption rose by 11%, or 17 billion m3, year-on-year amid higher gas use across all end-use sectors. Lower natural gas prices continued to stimulate gas demand in India, with gas use in industry rising by over 20% year on year in the first five months of 2024.

Combined industrial gas consumption in China, Europe, India, and the US comprised around half of the global consumption, growing by an “impressive” 6%, or nearly 20 billion m3, year over year.

However, IEA warns that despite the rapid growth seen in the first half of the year, the demand outlook remains fragile.

"Global LNG production underperformed in the second quarter of 2024, while geopolitical tensions are fuelling price volatility. Natural gas prices increased across all key markets in the second quarter of 2024, reflecting tighter market fundamentals," the IEA said.

Gas-to-power demand grew by 2% year-on-year in the first part of the year, as the strong gains in North America, the fast-growing Asian markets and Eurasia were partially offset by lower gas-fired power generation in Europe. Gas demand in the residential and commercial sectors increased by 1% as an unseasonably warm first quarter weighed on heating requirements in Europe and North America.

The IEA forecasts full-year 2024 global gas demand to grow by 2.5% or just over 100 billion m3 in 2024, with the growth capped in import markets by the limited increase in global LNG supply, which is expected to expand by 3% or 15 billion m3.

Industry and energy own use is expected to account for over 55% of incremental gas demand in 2024, supported by continued economic expansion in fast-growing Asian markets, as well as recovery in European industrial demand. Global gas demand in the residential sector is expected to grow by 2.4% in 2024, following a mild northern hemisphere winter and assuming average weather conditions in the last quarter of the year. A minor increase is expected in global gas-to-power demand, as higher gas burn across all regions to be offset by the projected decline in Europe.

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