World natural gas demand on track to hit record high in 2025, says IGU report

Sept 10 (Reuters) - Global natural gas demand is on track to climb by around 1.7% in 2025 after hitting a record high in 2024 as consumers around the world keep using more of the fuel for power generation, transportation and industry, according to the 2025 Global Gas Report released on Wednesday by the International Gas Union industry trade group and Italian gas pipeline company Snam SRG.MI.

The report projected global gas demand would rise about 71 billion cubic meters in 2025 to around 4,193 bcm after climbing 78 bcm, or 1.9%, to a record 4,122 bcm in 2024. The lower growth expected in 2025 versus 2024 was mostly due to slightly slower demand growth in Asia in 2025, the report said.

That record demand in 2024 equals roughly 11.3 bcm per day or 399.3 billion cubic feet per day.

The report showed that global gas demand growth in the first half of 2025 was mainly seen in Europe and North America, increasing by 6.1% and 1.5% respectively.

Accelerating U.S.-led artificial intelligence data center growth, accounting for about 1.5% of global electricity demand in 2024 and an expected 1.7% in 2025, is making it difficult to project future energy demand, the report noted.

LNG trade continued to expand this year, boosted by a sharp rise in European imports, which increased by 12 bcm (23.6%) compared to the first half of 2024, to meet regional demand and storage injection needs, according to the report. Global LNG trade hit a record 555 bcm in 2024.

The report showed that global energy demand would likely follow an upward trajectory over the next decade, especially leading up to 2030, with a forecast surge in power consumption in China and India expected to drive an increase in gas demand.