Global Gas Forecast: Supply and Demand

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.

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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.

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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 Field Editor at ECP, 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).

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