Global Gas Report 2023: Challenges and Opportunities in the Gas Sector

Uncertain global gas demand in 2023.

Share:

International Gas Union

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The Global Gas Report 2023 was published by the International Gas Union (IGU), Snam and knowledge partner Rystad Energy at the Energy Intelligence Forum in London.

The Gas Market in 2023

The global gas industry showed great resilience in the face of extreme shocks in 2022, emerging from the most turbulent year in its history more agile and adaptable than ever. However, the global gas market remains unstable in 2023. It remains undersupplied and is highly sensitive to fluctuations in supply and demand.

Significant divergences between the outlook for global energy and gas demand, particularly with regard to investment in natural gas, low-carbon gases and renewable gases, raise the risk of more severe energy shocks by 2030. Natural gas, low-carbon gases and renewable gases play a key role in decarbonizing energy systems worldwide, thanks to the flexibility of LNG infrastructures.

The Energy Transition in Question

Increased attention to comprehensive energy planning, the development of low-carbon gases, robust conservation measures to reduce demand, and carbon capture and storage will determine the success of the energy transition.

As a result of the supply and price shocks linked to the Russia-Ukraine crisis, global gas demand is expected to be 1.5% lower in 2022 than in 2021. The biggest declines were in Europe and Asia, partly offset by strong growth in North America.

Demand growth in China

In China, gas demand rose by 5.4% in the first half of 2023, reaching 194 billion cubic meters.

Stefano Venier, CEO of Snam, stressed the importance of continuing to invest in gas infrastructure to guarantee a reliable and affordable supply of natural gas and accelerate the development of low-carbon green gas and CCS.

Gas Price Trends

Natural gas prices remain above pre-health crisis levels in 2023, although prices have fallen from the record peaks of 2022. The reduction in prices in 2023 is largely due to lower demand, mainly in Europe and Asia.

IGU President Madam Li Yalan stressed that to build sustainable energy systems that are affordable for all, investment in gas is needed alongside renewable energies.

Despite recent optimism, continued investment in the natural gas value chain is needed to meet global demand and expected growth in certain regions.

An Uncertain Future

Analysis of potential trajectories for the world gas market towards 2030 shows that additional investment is needed to satisfy many possible demand prospects. Without further investment, existing gas production is set to decline, underscoring the importance of acting now.

By the end of 2022, global low-carbon hydrogen supply capacity stood at 3.2 million tonnes per year, and biomethane at nearly 7 billion cubic meters, well short of the 2030 targets.

Global CO2 emissions continued to rise in 2022, mainly due to higher natural gas prices. However, by 2023, lower prices, the resumption of nuclear power and the production of energy from renewable sources have reduced coal consumption and emissions, particularly in Europe.

About the Report

The 2023 edition of the Global Gas Report is the result of a collaboration between IGU and Snam, produced by Rystad Energy. It aims to provide information on the global gas industry, and to inform stakeholders, partners and global decision-makers on the current state of the sector and priorities for the future.

Download the full 2023 report here.

MCF Energy has completed drilling of the Kinsau-1A well in Bavaria at 3,310 metres, reaching its geological targets with hydrocarbon presence, reaffirming the company’s commitment to its European gas projects.
A Ukrainian national arrested in Italy will be extradited to Germany, where he is suspected of coordinating the 2022 attack on the Nord Stream 1 and 2 gas pipelines in the Baltic Sea.
Starting the ban on Russian gas as early as 2026 would raise benchmark prices, with a spread close to $1/MMBTU in 2026–2027 and spikes above $20/MMBTU in Austria, Hungary and Slovakia, amid tight regional supply and limited LNG availability.
Cairo has concluded three new exploration agreements with Apache, Dragon Oil and Perenco, for a total investment of over $121mn, as national gas output continues to decline.
The Iris carrier, part of the Arctic LNG 2 project, docked at China’s Beihai terminal despite US and EU sanctions, signalling intensifying gas flows between Russia and China.
Blackstone Energy Transition Partners announces the acquisition of a 620-megawatt gas-fired power plant for nearly $1bn, reinforcing its energy investment strategy at the core of America’s digital infrastructure.
Argentina aims to boost gas sales to Brazil by 2030, but high transit fees imposed by Bolivia require significant public investment to secure alternative routes.
The accelerated arrival of Russian cargoes in China has lowered Asian spot LNG prices, but traffic is set to slow with the seasonal closure of the Northern Sea Route.
Nigeria and Libya have initiated technical discussions on a new pipeline project to transport Nigerian gas to Europe through the Mediterranean network.
Shipments of liquefied natural gas and higher pipeline flows strengthen China’s gas optionality, while testing the sanctions regime and reshaping price–volume trade-offs for the next decade.
The Canadian government aims to reduce approval delays for strategic projects, including liquefied natural gas, nuclear and mining operations, amid growing trade tensions with the United States.
Liquefied natural gas exports in sub-Saharan Africa will reach 98 bcm by 2034, driven by Nigeria, Mozambique, and the entry of new regional producers.
Backed by an ambitious public investment plan, Angola is betting on gas to offset declining oil output, but the Angola LNG plant in Soyo continues to face operational constraints.
Finnish President Alexander Stubb denounced fossil fuel imports from Russia by Hungary and Slovakia as the EU prepares its 19th sanctions package against Moscow.
Japanese giant JERA has signed a letter of intent to purchase one million tonnes of LNG per year from Alaska, as part of a strategic energy agreement with the United States.
US-based Chevron has submitted a bid with HelleniQ Energy to explore four offshore blocks south of Crete, marking a new strategic step in gas exploration in the Eastern Mediterranean.
GTT has been selected by Samsung Heavy Industries to design cryogenic tanks for a floating natural gas liquefaction unit, scheduled for deployment at an offshore site in Africa.
A consortium led by BlackRock is in talks to raise up to $10.3 billion to finance a gas infrastructure deal with Aramco, including a dual-tranche loan structure and potential sukuk issuance.
TotalEnergies commits to Train 4 of the Rio Grande LNG project in Texas, consolidating its position in liquefied natural gas with a 10% direct stake and a 1.5 Mtpa offtake agreement.
US producer EQT has secured a twenty-year liquefied natural gas supply contract with Commonwealth LNG, tied to a Gulf Coast terminal under development.

Log in to read this article

You'll also have access to a selection of our best content.