Global natural gas consumption is expected to see slow growth over the next three years amid price increases due to the Russia-Ukraine war and likely supply disruptions, according to the International Energy Agency's latest report published on Tuesday.
The IEA revised its gas growth prospects with a forecast of a decline in gas demand for the remainder of this year.
However, its new Gas Market Report predicts a rise in global gas demand of 140 billion cubic meters (bcm) between 2021 and 2025.
The new growth expectation is less than half the quantity forecast previously and smaller than the increase of 170 bcm seen in 2021 alone, the agency explained.
'High prices and supply disruptions following Russia's invasion of Ukraine lead to downward revision and cast doubt on natural gas prospects in energy transitions,' it said.
The price of natural gas per megawatt-hour for August contracts in Europe, trading on the Netherlands-based virtual natural gas trading point (TTF), rose to a four-month high on Tuesday, hitting €175.80 during the day.
As natural gas prices reach record highs, demand is faltering 'causing some gas users to switch to coal and oil, while recent sharp cuts in Russian gas flows to Europe are raising alarms about supplies ahead of the winter,' the IEA said.
The agency argues that the frenzy surrounding natural gas is 'damaging natural gas’ reputation as a reliable and affordable energy source.'
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr