Baku, May 5, AZERTAC

Rising demand for natural gas in Asia and the Middle East is set to offset a decline in other regions this year, helping to keep the global market tight, Al Arabiya reported referring to International Energy Agency.

China’s consumption is forecast to jump by more than 6 percent, underpinning an increase of almost three percent in Asia on the whole, the agency said in its quarterly Gas Market Report.

Demand in Europe’s advanced economies is poised to drop five percent as renewable energy takes up a larger share of power generation.

Asia’s consumption — and China’s recovery from the Covid era, led by its the industrial sector — will be key for the market.

The IEA expects the country’s imports of LNG to jump by as much as 15 percent this year, while still remaining below 2021 levels.

India’s gas demand is projected to increase by four percent, following a drop amid soaring prices in 2022.

Elsewhere, consumption of gas in the Middle East is expected to rise by two percent, in large part due to Iran and Saudi Arabia.

In North America, it’s set to drop by two percent, as less of the fuel is used in heating and power generation. Global demand is forecast to remain flat.

No Guarantees

“The improved outlook for gas markets in 2023 is no guarantee against future volatility and should not be a distraction from measures to mitigate potential risks,” the IEA said.

While the US is set to become the world’s main LNG exporter this year, global supply of the fuel is expected to increase by just 4 percent. That’s not enough to offset the forecast drop in Russian pipeline deliveries, according to the agency.

LNG imports in Europe’s advanced economies are forecast to decline for the remainder of the year, after posting strong growth in the first quarter. The change is due to lower needs for storage and reduced gas demand.

European gas consumption dropped 16 percent for the 2022 winter heating period and marked the steepest drop in absolute terms for any winter in the IEA’s records.

Still, weather-related factors accounted for just 40 percent of the region’s decline in demand. Other factors included gas-saving policies, fuel-switching and rising energy prices.