Global LNG Hub
No Result
View All Result
  • Login
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
  • Subscribe
  • My account
  • Login
SUBSCRIBE
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
  • Subscribe
  • My account
  • Login
Global LNG Hub
Home LNG Supply

Global gas demand in 2020 to fall by twice the amount lost after the 2008 financial crisis

Editor by Editor
3 years ago
Reading Time: 3 mins read
global_gas_prices
Share on FacebookShare on TwitterShare on Linkedin
The Covid19 pandemic & a mild winter have delivered a historic shock to the global natural gas market, with demand set to fall 4%, or 150billion cubic metres in 2020 – twice the amount lost after the 2008 financial crisis.

The combination of the Covid-19 crisis and an exceptionally mild winter in the northern hemisphere have put global demand for natural gas on course for its largest annual decline in history, the International Energy Agency said today in a new report. Global gas demand is expected to fall by 4%, or 150 billion cubic metres (bcm) – twice the size of the drop following the 2008 global financial crisis.

RELATED POSTS

Could we see TTF dropping below JKM?

Could we see TTF dropping below JKM?

2 weeks ago
LNG Appears to be in Maintenance Season; Europe Sees Low Prices

LNG Appears to be in Maintenance Season; Europe Sees Low Prices

3 weeks ago
Global LNG liquefaction capacity is set to expand by over 36%

Global LNG liquefaction capacity is set to expand by over 36%

1 month ago

Natural gas has so far experienced a less severe impact than oil and coal, but it is far from immune from the current crisis.

As of early June, all major gas markets worldwide are experiencing falls in demand or slumps in growth, according to the IEA’s latest annual market report Gas 2020. For the full year, more mature markets across Europe, North America and Asia are forecast to see the biggest drops, accounting for 75% of the total decline in gas demand in 2020.

“Natural gas has so far experienced a less severe impact than oil and coal, but it is far from immune from the current crisis. The record decline this year represents a dramatic change of circumstances for an industry that had become used to strong increases in demand,” said Dr Fatih Birol, the IEA’s Executive Director.

Global oversupply is pushing major natural gas indices to record lows, while the oil and gas industry is cutting spending and postponing investment decisions to make up for the significant shortfall in revenue. Although a rebound is expected in 2021, the IEA report does not assume a rapid return to the pre-crisis trajectory.

“Global gas demand is expected to gradually recover in the next two years, but this does not mean it will quickly go back to business as usual,” Dr Birol said. “The Covid-19 crisis will have a lasting impact on future market developments, dampening growth rates and increasing uncertainties.”

“Global gas demand is expected to gradually recover in the next two years, but this does not mean it will quickly go back to business as usual,” Dr Birol said

After 2021, most of the increase in demand takes place in emerging Asia, led by China and India where gas benefits from strong policy support. In both countries, the industrial sector is the main source of demand growth, making it highly dependent on the pace of the recovery in domestic and export markets for industrial goods. Repercussions from the Covid-19 crisis are set to result in 75 bcm of lost annual demand by 2025, which is the same amount as the increase in global demand in 2019.

The main drivers of future supply growth – US shale and large conventional projects in the Middle East and Russia – are also under pressure from the current oil price collapse and uncertainty surrounding demand trends over the short and medium term.

Liquefied natural gas (LNG) is set to remain the main driver of the international gas trade. The wave of investment in LNG projects during 2018 and 2019 will bring additional export capacity in North America, Africa and Russia. Slower growth in global gas demand in the coming years is likely to result in capacity outpacing LNG imports through 2025, limiting the risk of a tight LNG market for the time being.

Liquefied natural gas (LNG) is set to remain the main driver of the international gas trade.

New production and infrastructure projects are likely to come online amid growth trends that are markedly below earlier expectations, reinforcing the prospect of overcapacity and low prices. This casts a shadow over future investments, which will be needed in the long term to ensure the renewal of production sources and global security of supply.

Source: IEA, Global gas Report, June 10, 2020

See the JUNE monthly GAS report by the IEA HERE

Tags: Faith Birolglobal gas reportIEALNG projectsLNG trade
Editor

Editor

Related Posts

Could we see TTF dropping below JKM?
LNG Contracts & Pricing

Could we see TTF dropping below JKM?

2 weeks ago
LNG Appears to be in Maintenance Season; Europe Sees Low Prices
Infrastructure

LNG Appears to be in Maintenance Season; Europe Sees Low Prices

3 weeks ago
Global LNG liquefaction capacity is set to expand by over 36%
LNG Supply

Global LNG liquefaction capacity is set to expand by over 36%

1 month ago
natural gas prices
Infrastructure

How will natural gas markets evolve through the injection season?

2 months ago
Calcasieu Pass LNG Commercial Operations May Be Delayed
Infrastructure

Calcasieu Pass LNG Commercial Operations May Be Delayed

2 months ago
Russian LNG exports to Europe overtake piped deliveries
Infrastructure

Russian LNG exports to Europe overtake piped deliveries

2 months ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

Could we see TTF dropping below JKM?

Could we see TTF dropping below JKM?

May 17, 2023
Natural-gas-price

Natural gas price benchmarks: prices continue to ease

May 2, 2023
LNG-prices

Weekly trend of natural gas and LNG prices – May 22

May 24, 2023

Recent Post

LNG-prices

Weekly trend of natural gas and LNG prices – May 22

May 24, 2023
LNG-prices

Weekly trend of natural gas and LNG prices – May 15

May 17, 2023
Could we see TTF dropping below JKM?

Could we see TTF dropping below JKM?

May 17, 2023
Asian buyers return as LNG prices decline

Asian buyers return as LNG prices decline

May 16, 2023
LNG Appears to be in Maintenance Season; Europe Sees Low Prices

LNG Appears to be in Maintenance Season; Europe Sees Low Prices

May 11, 2023
LNG-prices

Weekly trend of natural gas and LNG prices – May 9

May 9, 2023

Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info

Categories

  • Asian LNG
  • Australian LNG
  • European LNG
  • Global LNG
  • LNG Africa
  • LNG Bunkering
  • LNG Latin America
  • LNG North America
  • LNG Projects
  • LNG Trade and Pricing
  • Middle East LNG
  • Small Scale LNG
  • FLNG

Recent Posts

Weekly trend of natural gas and LNG prices – May 22

Weekly trend of natural gas and LNG prices – May 15

Could we see TTF dropping below JKM?

Energise your Wednesday!

Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!

By signing up, I agree to our TOS and Privacy Policy.

© 2020 GlobalLngHub | All Rights Reserved

No Result
View All Result
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
  • Subscribe
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT

Energise Your Wednesday!

SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. EVERY WEDNESDAY!