Gas demand set to fall again

Global gas demand is expected to decline by 0.5% this year, mainly due to lower use in the power and industrial sectors.

It would be the third time in the last seven years that consumption has fallen, according to the International Energy Agency.

The agency said that the impacts of the war in the Middle East continue to reshape the global natural gas market, with tighter supply and elevated prices weighing on demand in key markets.

Natural gas prices in Europe and Asia have moderated from recent highs in March but remain well above 2025 levels.

The implications of the conflict for LNG supply are also set to extend beyond 2026, according to the report which predicts means markets could remain tighter than had been previously expected over the next two years.