The International Energy Agency (IEA) in its annual outlook said that natural gas demand this year is set to post the biggest decline since the 2008 global financial crisis. According to the outlook, worldwide natural gas demand is forecast to decrease 150 Bcm (4%) to 3,850 Bcm in 2020. Natural gas prices have declined to record lows in some key markets amid lockdowns and lower industrial production due to the coronavirus crisis.
IEA expects demand recovery to start in 2021, but it will likely be slow and will not rebound to pre-pandemic levels immediately. Weak demand in European, North American, and Asian markets is expected to contribute to 75% of the world’s overall decline in 2020. Asia, led by China and India, is expected to propel the increase in demand after 2021, IEA added.
