IEA predicts rise in global gas prices in 2023

Global gas demand, after falling by 1.6% last year, will remain at about the same level in 2023. At the same time, the possibility of resumption of growth in prices for gas remains due to the removal of COVID restrictions in China, Report informs referring to the International Energy Agency (IEA).

Global natural gas markets remained tight last year despite a decline in global demand of about 1.6% in 2022. Demand is expected to remain flat in 2023, but there is a lot of uncertainty around the forecast, especially in terms of Russia’s future actions and the economic consequences of fluctuations in energy prices, the report says.

Unprecedented increases in gas prices led to a 13% reduction in demand for it in Europe, both due to government measures and due to lower industrial production and consumption by household users, the IEA notes.

Meanwhile, gas demand in Asia fell by 2% due to high LNG prices, coronavirus restrictions in China and mild weather conditions in the northeast Asia-Pacific region.