Global Gas Demand Drops Drastically: What Is the Impact?

The International Energy Agency (IEA) revealed that the global demand for natural gas might experience the largest decline in history in 2020 despite consumption increases in recent months. In a report titled Global Gas Security Review 2020, the IEA predicted the demand would fall by 3 percent or by 120 billion cubic meters (bcm) this year.

It was better than the projection four months ago when the IEA estimated that the gas demand would drop by 4 percent or 150 bcm. The figure was double the amount of demand lost after the 2008 financial crisis. "Regardless of these revisions, the demand drop in 2020 will remain one of the worst declines ever recorded," the IEA executive director, Fatih Birol, revealed.

The global gas demand has been progressively recovering since last June, driven mainly by emerging markets. "However, this does not mean a return to business as usual, as the current crisis can have long-lasting repercussions," Birol revealed. According to the IEA, gas demand in all regions will be hit hard. However, the greatest impact will become more apparent in the established markets in Europe, North America, Asia, and Eurasia, accounting for 75 percent of lost gas consumption this year.