Energy Capital & Power

Global Gas Forecast: Supply and Demand

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Global gas demand has witnessed a dramatic reduction, as countries attempt to mitigate the spread of COVID-19. Correspondingly, a short-term gas oversupply has slashed prices and temporarily stalled new gas investment. However, demand is expected to progressively recover throughout 2021, as consumption returns to pre-COVID-19 levels in mature markets, and emerging markets capitalize on the low-price environment.

Global Gas Demand Forecast

With the onset of COVID-19, global gas demand saw a sharp decline as borders were closed, country-wide lockdown measures were enforced and lower levels of economic activity were experienced, causing unprecedented reductions in global gas demand for transportation, power generation and industry.

Global Gas Forecast: Supply and Demand 1

Global Gas Supply Forecast

Prior to COVID-19, the global gas market was experiencing a temporary market glut due to the commissioning of new LNG facilities. However, as demand slowly recovers, gas production is expected to become more diversified through new exploration initiatives.

Global Gas Forecast: Supply and Demand 3

Africa is set to make the most substantial gains in regional share of global gas production.

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Grace Goodrich

Grace Goodrich

Grace Goodrich is a Publications Editor at Energy Capital & Power, where she writes about the intersection of energy, policy and global finance in sub-Saharan Africa's fastest-growing economies. Grace produces our Africa Energy Series investment reports in Angola and Equatorial Guinea (2019), as well as co-authored African Energy Chamber: Road to Recovery (2021).