Natural Gas: Bleak outlook for world demand due to Corona-virus

According to the new International Energy Agency report “Global Gas Security Review 2020”, global demand for natural gas is expected to decrease this year by 3%, or 120 billion cubic meters.

Therefore, IEA is expecting that the demand for gas in all regions will be affected, but the largest impact will be felt in traditional markets throughout Europe, North America, Asia and Eurasia.

For the next year 2021, the agency expects the demand for natural gas to increase by 3% compared to 2020. The increase in demand will come from the fast-growing markets in Asia, Africa and the Middle East. However, the increased uncertainty overshadows the doubts surrounding expectations, due to the re-emergence of Covid-19 cases and the possibility of another long-term wave of the virus.

The agency warned that the recovery in markets will be slower in traditional markets, which may not see demand return to pre-COVID-19 levels until 2022 or later.

“Global demand for gas has recovered gradually since June 2020, mainly driven by emerging markets,” says Fatih Birol (Executive Director of the International Energy Agency). Birol adds, “But this does not mean returning to business as usual, because the current crisis may have long-term repercussions.”