report
Global Gas Report Edition 2024
The International Gas Union (IGU), Snam and knowledge partner Rystad Energy are pleased to announce the 2024 edition of the Global Gas Report.
Rising energy demand in all regions and underinvestment in gas and clean energy are putting global energy supplies at risk. The energy targets for 2030 seem unattainable.
Key messages:
- Global gas markets remain in a fragile balance. Supply is growing only to a limited extent, while demand is steadily increasing. In 2023, demand is expected to increase by 1.5 percent, and by the end of 2024, this figure is expected to accelerate to 2.1 percent. Asia remains the main growth driver, while North America and the Middle East lead exports.
- If gas demand continues to rise without additional production increases as it has over the past four years, a global supply deficit of 22% is expected by 2030. If demand continues to rise, the deficit will worsen, underlining the urgent need to increase investment.
- Energy demand has continued to rise in both industrialised and developing countries. Coal combustion increased more than ever in 2023, remaining the largest source of global energy emissions – breaking another record. If current trends in energy demand and supply continue, the 2030 targets set out in policy-driven decarbonization scenarios will most likely be missed. In fact, Europe has experienced a surge in energy demand despite efforts to improve efficiency and ongoing industrial decline. In North America, energy demand has exceeded 2019 levels and continues to rise, driven by the transport sector and AI data centers. Demand is also rising sharply in Asia, particularly in the industrial sectors of India and China. Meanwhile, Africa's energy demand is growing faster than most other regions due to urban development, although it still does not reach the levels required for full energy access, as equitable access to electricity remains a significant challenge in Africa and parts of South America.
- To curb the increase in greenhouse gas emissions and maintain a stable balance in the global gas market, it is necessary to increase investment in natural gas supplies and to expand biomethane, carbon capture and storage (CCS) and low-carbon hydrogen technologies. Natural gas today offers the opportunity to reduce emissions from coal by 50% and from oil by 30% through cost-effective conversion. Biomethane is a direct replacement for natural gas. Today, its share of the natural gas market is well below its potential at around 1% and is mainly produced in North America and Europe. However, new production centers are emerging in centers such as China and India. CO2 Capture capacity, a crucial technology for a successful energy transition, is also gaining importance but is still far from what is needed, as are biomethane and low-carbon hydrogen. These technologies will play a crucial role in decarbonising energy supplies (especially in sectors where emissions are hard to reduce) and ensuring their resilience. Scaling them up is crucial and requires urgent investment, while allowing policymakers to start implementing the growing number of project proposals.
Published on 27 August 2024
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