Global gas demand could shrink by 4%, equivalent to 150 billion cubic metres, in 2020.
This is according to a recent report by the International Energy Agency (IEA) that predicts the dip in demand across energy markets in Europe, North America and Asia could account for 75% of the total decline in 2020.
The study further predicts that the Covid-19 crisis could result in a global drop in annual demand of 75 billion cubic metres, by 2025.
Dr Fatih Birol, Executive Director at IEA, said: “Global gas demand is expected to gradually recover in the next two years, but this does not mean it will quickly go back to business as usual. The Covid-19 crisis will have a lasting impact on future market developments, dampening growth rates and increasing uncertainties.”
However, according to findings, the impact on natural gas has been less severe than the impact to global oil and coal markets.
The report notes investments in liquefied natural gas (LNG) projects during 2018 and 2019 are expected to provide extra export capacity to energy markets in North America, Africa and Russia and suggests this could help ease the impact of Covid-19 on the LNG market.
The report highlights that after 2021, the bulk of demand is likely to come from Asia, led by China and India.