The "Global Gas Report 2024" was unveiled at the ONS Energy Conference held from August 26 to 29 in Stavanger, Norway. The report is a collaborative effort among the International Gas Union (IGU), Snam, and Rystad Energy. The IGU, covering more than 90 percent of the global gas market, represents the global gas industry with members in over 80 countries. Snam is a leader in European natural gas transport, while Rystad Energy operates as a global energy information company.
Contrary to the International Energy Agency's (IEA) forecasts in July 2024, which predicted stable natural gas demand and unchanged CO2 emissions in the global energy sector, the "Global Gas Report 2024" identifies a significant increase in natural gas demand. The IEA anticipated a slight increase in demand for 2024 and a decrease for 2025, but the new report highlights a lack of necessary investments to meet this rising demand.
"The global gas markets remain in a fragile balance with limited supply growth as demand continuously increases," the IGU report notes. In 2023, global gas demand rose by 15 percent, and gas companies expect an increase of 21 percent by the end of 2024. Asia continues to be the main driver of this growth. Regarding exports, America and the Middle East lead.
Increasing Investments in Natural Gas Capacities
"If the gas demand continues to rise without additional production development, as has been the case in the last four years, a global supply deficit of 22 percent is expected by 2030," the IGU states. Therefore, it calls for increased investments in natural gas capacities. "Coal combustion increased more in 2023 than ever before and remains the largest source of global energy emissions," the report warns. This endangers meeting climate protection goals by 2030.
Despite efforts to enhance efficiency and despite the ongoing industrial decline, Europe sees an increase in energy demand. In North America, energy demand has surpassed 2019 levels and continues to grow, driven by the transportation sector and AI data centers. The report also indicates rising demand in Asia, especially in the industrial sectors of India and China.
"Meanwhile, Africa's energy demand is growing faster than most other regions due to urban development," the IGU observes. However, equitable electricity access in Africa and parts of South America remains a significant challenge. The IGU calls for increased investments in natural gas supply as well as in biomethane, carbon capture and storage (CCS), and low-carbon hydrogen technologies.
"Natural gas offers an immediate opportunity to reduce emissions by 50 percent compared to coal combustion and by 30 percent compared to oil," the report states. IGU President Li Yalan commented, "Employing innovative solutions and flexible policies will be key to managing this highly uncertain energy landscape."
Stefano Venier, CEO of Snam, added that the energy transition poses a unique challenge for humanity. "In this continuously evolving transformation, natural gas and its associated infrastructure are crucial elements of the global energy system’s sustainable resilience."
