GLOBAL GAS DEMAND SET TO FALL IN 2026, IEA FORECASTS

Global gas demand is projected to fall by 0.5 per cent in 2026, according to the International Energy Agency. The forecast represents the first annual decline in gas demand since 2022. The IEA attributed the projected fall to higher prices caused by the Iran war and continued uncertainty surrounding supply through the Strait of Hormuz.

The impacts of the Iran war continue to affect the global fossil gas and liquefied natural gas market significantly. Supply concerns through the Strait of Hormuz have contributed to elevated pricing pressures on gas markets worldwide. These factors have combined to reduce demand expectations for the coming year.

The projected decline would mark a shift in trajectory for global gas markets following the 2022 energy crisis, which had driven increased demand. The IEA's forecast suggests that geopolitical tensions and their effect on energy pricing are reshaping consumption patterns across the global economy.