Global Natural Gas Demand Set to Decline as Supply Disruptions Keep Prices High

Global Natural Gas Demand Set to Decline as Supply Disruptions Keep Prices High

GLOBAL: The International Energy Agency (IEA) expects global natural gas demand to decline by 0.5% in 2026, marking the third annual contraction in seven years. Ongoing disruption to LNG shipments through the Strait of Hormuz, caused by conflict in the Middle East, has tightened supply and kept gas prices elevated despite some recovery in shipping activity. Demand has weakened across the power and industrial sectors, particularly in the Middle East and Asia, where higher prices have encouraged fuel switching. Although increased LNG production in North America, Africa and Australia is expected to offset some supply losses, continued uncertainty could keep global gas markets tight through 2027 and affect wider industries, including fertiliser production. 

Source: IEA