Natural gas in 2025: A rebalancing market with growing global demand

Global natural gas prices were largely stabilized in the last couple of years followed by the supply shocks of 2022 and 2023, driven by geopolitical tensions and energy crisis. This year marks a return to structural growth, with global demand reaching new highs, particularly fueled by industrial recovery in emerging economies.

According to the International Energy Agency (IEA), global natural gas demand rose by 2.7% in 2024, surpassing pre-pandemic growth rates. This upward trend continues into 2025, driven by robust economic activity in Asia, increased use in power generation, and a shift from oil to gas in several sectors. Notably, over 75% of the demand growth is attributed to emerging markets, with Asia alone accounting for around 40% of the increase.