China, India drive natural gas demand to record high in 2024

Asia led global natural gas demand growth in 2024, accounting for 40% of the increase that pushed total consumption to a record 4.4 trillion cubic meters, according to the International Energy Agency (IEA).

Driven by leveraged liquefied natural gas (LNG) imports, Asia’s gas demand rose by 6%, topped by China’s consumption climbing over 7% and India’s by 10%. This regional surge played a key role in the global rebound following two years of supply disruptions.

Overall, global natural gas demand grew by 2.7% last year—surpassing both the 2010–2019 average annual growth of 2% and the modest gains seen during the 2019–2023 energy crisis.

Industry and power generation fuel growth

The surge in global natural gas demand was largely driven by increased consumption in industrial production and electricity generation, which together made up around 75% of total growth.

In Asia, this trend was reinforced by rapid economic expansion and extreme heat waves, especially in China and India. Extreme heat across major economies—including the United States—played a significant role in pushing up electricity-related gas use. Weather-related factors alone accounted for about one-fifth of the overall demand increase, while residential and commercial use grew by roughly 1%.

Europe, meanwhile, saw a modest rebound in industrial gas use, though overall demand remained below pre-crisis levels. Notably, the EU’s gas consumption for power generation dropped by 5%, reflecting a strong shift toward renewable energy.

In North America, demand grew by 1.8%, led by higher use in the power sector, while industrial and residential consumption remained stable. Latin America faced severe droughts in Brazil and Colombia, which weakened hydroelectric output and prompted greater dependence on gas-fired electricity.

The Middle East posted a 2% rise in demand, supported by growing industrial and energy needs. In Africa, however, gas consumption edged up by less than 1% due to weak production activity.