If current trends persist, future energy demand will outpace demand expectations in many scenarios, positioning natural gas as the most scalable and responsive solution to meet growing power needs and stabilise grids.
If current trends persist, future energy demand will outpace demand expectations in many scenarios, positioning natural gas as the most scalable and responsive solution to meet growing power needs and stabilise grids.
Natural gas demand rose globally by 78 billion m3 (1.9%) in 2024, reaching 4122 billion m3, and is expected to continue growing in 2025 by 71 billion m3 (1.7%), according to the 2025 Global Gas Report by the International Gas Union (IGU) and Snam released today.
The global Gas market has exhibited regional differences in Gas demand in the first half of 2025: growth was mainly seen in Europe and North America, increasing by 6.1% and 1.5% respectively. Meanwhile, LNG trade continued to expand, boosted by a sharp rise in European imports, which increased by 12 billion m3 (23.6%) in the first half of 2025, to meet regional demand and storage injection needs.
Observed trends suggest global energy demand is expected to follow an upward trajectory over the next decade, especially leading up to 2030. Power consumption is expected to surge in China and India, thus driving an increase in natural gas demand, positioning Asia as the key driver of global energy demand, supported by growth in North America.
Heatwaves and technological drivers, such as the AI and Cloud steep growth, are straining power systems globally, requiring reliable and flexible sources and more infrastructure. Geopolitical tensions are clouding the outlook for LNG demand and supply, alongside the dynamic rate of energy transition.
If current trends persist, energy demand growth will likely surpass most of the scenario pathways proposed by leading institutions, exceeding projections for 2030. It is therefore essential that investment in Gas and its infrastructure (including adequate supportive policies) continues at the same pace to:
- Meet this growing energy demand and hedge against excess demand and/or supply shortfalls.
- Provide energy systems resilience across different time horizons to accommodate increasingly high levels of variable renewable energy power sources.
Additionally, decarbonisation is happening across different parts of the Gas value chain, driven by improving system efficiency, increased electrification, methane abatement, flaring reductions, and more. Investment, especially in renewable gas (biomethane) and Carbon Capture and Storage (CCS), is also progressing but is dependent on supportive regulatory framework and policy measures.
Menelaos (Mel) Ydreos, the Secretary General of the IGU, said: “It is clear that natural gas remains essential to energy security in an ever-evolving energy system. It is continually demonstrating its ability to deliver reliable energy supply with lower emissions than oil and coal, while also serving as a stabilising force in future energy mixes amid rising electrification, growing variable renewables penetration and increasing uncertainties such as extreme weather events and technological breakthroughs.”
“As global markets remain unsettled, natural gas continues to play a pivotal role in ensuring affordability, continuity and resilience to the energy system. We believe it is essential to continue investing in gas infrastructure to enhance energy security and achieve long term decarbonisation targets. To this regard, developing biomethane and CCS can contribute to meeting these goals by leveraging existing assets, and help mitigate market volatility, in the interest of businesses and households” commented Snam CEO, Agostino Scornajenchi.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/12092025/global-gas-demand-2025/