Informist, Tuesday, Apr. 15, 2025

MUMBAI – Global consumption of natural gas rose by 2.5% in 2024, reaching an all-time high of 4.17 trillion cubic metres, the Gas Exporting Countries Forum said in its Annual Gas Market Report 2025. The growth in consumption was fuelled by economic expansion, industrialisation, technological advancements, population growth, urbanisation, and changing weather patterns, it said.

The growth in consumption was primarily driven by Asia-Pacific countries, which accounted for 60% of the global incremental demand, according to the report. China's gas consumption rose by 33 billion cubic metres to 430 billion cubic metres. Russia and the US also experienced a rise in consumption of up to 20 billion cubic metres.

The short- and medium-term outlook for natural gas remains robust, the forum said, with global demand expected to rise by 2% in 2025 and in 2026. However, the onset of the tariff war has introduced significant downside risks to global economic growth expectations.

Global gas production rose by 2.5% in 2024, reflecting a robust response to rising demand, the forum said. "The increase in supply was predominantly driven by Eurasia, the Middle East (West Asia), and Asia Pacific," it said. Russia's production increased by 50 billion cubic metres, while China and Saudi Arabia added 15 billion cubic metres and 12 billion cubic metres, respectively. In contrast, the US, the world's largest gas producer, experienced a fall due to output cuts by domestic producers in response to low Henry Hub gas prices, it added.

India's gas consumption rose by 10% to 72 billion cubic metres in 2024, driven by higher demand in the industrial sector, increased use in power generation, and the ongoing expansion of city gas distribution networks, according to the report. Supportive government policies, favourable energy pricing, and infrastructure development also played significant roles in driving the rise in consumption.

India's gas production rose by 3.5% to 33.8 billion cubic metres in 2024, primarily driven by a government initiative to rejuvenate production from mature gas fields, the forum said. End

Reported by Ashutosh Pati

Edited by Rajeev Pai

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