A liquefied natural gas (LNG) tanker in the Singapore Straits. Credit: Nicola Pulham via Shutterstock.

The Asia region saw a 60% increase in global gas demand in the first half of 2024 (H1 2024), with China and India experiencing more than 10% year-on-year demand growth, according to the International Energy Agency’s (IEA) latest gas report.  

The Gas Market Report for the third quarter of 2024 (Q3 2024), released on 16 July, noted that nearly 65% of global demand growth in H1 2024 came from higher gas usage in the industry, largely driven by the economic growth of rapidly expanding Asian markets. 

Industrial gas consumption in China, Europe, India and the US comprised around half of the global consumption, an “impressive” 6% or nearly 20 billion cubic metres yearly growth, reported the IEA.  

Meanwhile, gas-to-power demand increased by a more modest 2% over the year , with strong gains in North America, fast-growing Asian markets and Eurasia offset by reduced gas-fired power generation in Europe. 

The IEA noted that after the 2022 natural gas supply shock and a gradual rebalancing in 2023, gas markets experienced more significant growth in H1 2024.  

The IEA’s initial estimates suggest global gas demand rose by 3% year-on-year during this period, surpassing the historical average growth rate of 2% between 2010 and 2020. 

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Despite this robust growth, the recovery remains delicate. According to the report, global LNG production fell slightly in Q2 2024, while geopolitical tensions fuelled price volatility.  

Gas prices declined to pre-global energy crisis levels in Q1 2024 but have since risen across all major markets, reflecting tighter supply and demand dynamics. 

In June, the International Gas Union (IGU) revealed that LNG prices have dropped to a level conducive to the recovery of import growth in Asia.  

According to LNG price benchmark Platts JKM, the average price was $13.86 per one million British thermal units in 2023, showing a significant reduction in average annual price volatility compared with 2022 levels but still higher than pre-crisis levels. 

According to the IGU, China has regained its position as the largest LNG importer, importing 71.19 million tonnes (mt) in 2023. Europe has also solidified its status as a major LNG importer, holding the second-largest position at 121.29mt.  

“The contraction in LNG supply combined with strong Asian demand growth tightened the global gas balance in the second quarter. Moreover, uncertainties re-emerged around Russian piped gas supplies to Europe, [fueling] additional price volatility. Consequently, gas prices rose across key Asian and European markets, rising above their 2023 levels by June 2024,” the IEA concluded in the report.