Global gas demand has witnessed a dramatic reduction, as countries attempt to mitigate the spread of COVID-19. Correspondingly, a short-term gas oversupply has slashed prices and temporarily stalled new gas investment.
However, demand is expected to progressively recover throughout 2021, as consumption returns to pre-COVID-19 levels in mature markets, and emerging markets capitalize on the low-price environment.
GLOBAL GAS DEMAND FORECAST
With the onset of COVID-19, global gas demand saw a sharp decline as borders were closed, country-wide lockdown measures were enforced and lower levels of economic activity were experienced, causing unprecedented reductions in global gas demand for transportation, power generation and industry.
GLOBAL GAS SUPPLY FORECAST
Prior to COVID-19, the global gas market was experiencing a temporary market glut due to the commissioning of new LNG facilities. However, as demand slowly recovers, gas production is expected to become more diversified through new exploration initiatives.