Global natural gas demand set for biggest fall on record, says report

The global natural gas market is poised for the biggest-ever drop in demand as a result of the Coronavirus crisis, an event that’s likely to hamper the industry’s growth for years to come.

Consumption is set to slump by 4% this year, or twice the amount lost after the 2008 financial crisis, according to the International Energy Agency’s Gas 2020 report. Global demand is expected to rise by just 1.5% annually to 2025, compared with a previous forecast of 1.8%.

“The record decline this year represents a dramatic change of circumstances for an industry that had become used to strong increases in demand,” said Fatih Birol, the IEA’s executive director. “The Covid-19 crisis will have a lasting impact on future market developments, dampening growth rates and increasing uncertainties.”