The “Global Gas Report 2024” was presented at the ONS Energy Conference from August 26 to 29 in Stavanger, Norway. It was developed by the International Gas Union (IGU), Snam, and Rystad Energy. The IGU represents the global gas value chain with members in over 80 countries, covering more than 90 percent of the global market. Snam is one of the leading companies in European natural gas transportation, and Rystad Energy is a global energy information company. The report predicts a significant increase in natural gas demand compared to the forecast by the International Energy Agency (IEA), for which there is insufficient investment. The IEA had predicted a stable demand and CO2 emissions for the global energy sector in July 2024, with a slight increase expected for 2024 and a decrease in 2025.
“The global gas markets remain in a fragile balance with limited supply growth as demand steadily increases,” states the IGU report. In 2023, global gas demand saw an increase of 15 percent. By the end of 2024, companies even expect an increase of 21 percent. Asia remains the main driver of this growth. Regarding exports, America and the Middle East top the list.
“If gas demand continues to rise without additional production development, as in the past four years, a global supply deficit of 22 percent is expected by 2030,” says the IGU. Therefore, it calls for increasing investments in natural gas capacities. “Coal combustion increased more in 2023 than ever before and continues to be the largest source of global energy emissions,” the report states. This endangers meeting climate protection targets by 2030.
High Demand in Africa
Contrary to efforts to improve efficiency and despite ongoing industrial decline, Europe is experiencing an increase in energy demand. In North America, energy demand has exceeded 2019 levels and continues to grow, driven by the transport sector and AI data centers. According to the report, demand is also rising in Asia, particularly in the industrial sectors of India and China.
“Meanwhile, Africa’s energy demand is growing faster than in most other regions due to urban development,” the IGU notes. However, equitable electricity access in Africa and parts of South America remains a significant challenge. The IGU calls for increasing investments in supply and expanding biomethane, carbon capture and storage (CCS), and low-carbon hydrogen technologies.
Natural Gas Important for the Global Energy System
“Natural gas offers an immediate opportunity to reduce emissions by 50 percent compared to coal combustion and by 30 percent compared to oil,” it states. IGU President Li Yalan commented, “The deployment of innovative solutions and flexible policies will be key to navigating this highly uncertain energy landscape.”
Stefano Venier, CEO of Snam, added that the energy transition presents a unique challenge for humanity. “In this constantly evolving change, natural gas and the associated infrastructure represent a crucial element of the sustainable resilience of the global energy system.”
