Middle East Gas Demand Expected to Rise 3.5% in 2026: IEA
The International Energy Agency (IEA) projects that combined gas demand in the Middle East and Africa will increase by 2 percent in 2025, before accelerating to 3.5 percent growth in 2026.
The latest report from the International Energy Agency (IEA) indicates that global gas consumption is anticipated to reach an all-time high in 2026, with demand acceleration expected to be around 2 percent globally, up from the projected expansion of 1.3 percent in 2025.
This growth trend is particularly driven by rising usage within the industry and power sectors worldwide.
According to Keisuke Sadamori, IEA Director of Energy Markets and Security, factors such as an impending wave of liquefied natural gas (LNG) supply additions are expected to ease fundamentals and stimulate additional demand, especially in Asia.
The IEA's projection, however, is subject to high levels of uncertainty regarding the global macroeconomic outlook and the volatile geopolitical environment.
Asia is anticipated to be the primary driver of global gas demand growth, with an expected increase of more than 4 percent in 2026, accounting for roughly half of the global growth.
In contrast, North American natural gas demand is forecasted to rise by less than 1 percent next year, primarily due to support from the power sector.
Conversely, European gas demand is projected to decline by 2 percent in 2025 amid strong renewable energy output.
The IEA report also highlights the significant role that stable geopolitical conditions in the Middle East play in ensuring global energy security.
For instance, the region produces 30 percent of global oil and 18 percent of global gas production, contributing to roughly 25 percent of LNG supplies and about one-third of global urea exports.
Rising security concerns in the Middle East led to an initial increase in prices due to fears that an escalation of regional conflicts could disrupt the Strait of Hormuz, a critical oil and LNG chokepoint.
Additionally, the report suggests that the Middle East is on track to become the world's second-largest gas producer by 2025, ranking only behind North America.
Iran currently leads the Middle East in gas production, with Qatar and Saudi Arabia following closely behind.
The IEA also forecasts a 7 percent or 40 billion cubic meter increase in global LNG supply by 2026 as new projects come online in countries such as Qatar and the US.
In addition to these developments, the report points out that North America's LNG supply is expected to rise by 5.5 percent or 30 bcm for all of 2025, primarily driven by ramp-ups at major new LNG projects.
This growth trend is particularly driven by rising usage within the industry and power sectors worldwide.
According to Keisuke Sadamori, IEA Director of Energy Markets and Security, factors such as an impending wave of liquefied natural gas (LNG) supply additions are expected to ease fundamentals and stimulate additional demand, especially in Asia.
The IEA's projection, however, is subject to high levels of uncertainty regarding the global macroeconomic outlook and the volatile geopolitical environment.
Asia is anticipated to be the primary driver of global gas demand growth, with an expected increase of more than 4 percent in 2026, accounting for roughly half of the global growth.
In contrast, North American natural gas demand is forecasted to rise by less than 1 percent next year, primarily due to support from the power sector.
Conversely, European gas demand is projected to decline by 2 percent in 2025 amid strong renewable energy output.
The IEA report also highlights the significant role that stable geopolitical conditions in the Middle East play in ensuring global energy security.
For instance, the region produces 30 percent of global oil and 18 percent of global gas production, contributing to roughly 25 percent of LNG supplies and about one-third of global urea exports.
Rising security concerns in the Middle East led to an initial increase in prices due to fears that an escalation of regional conflicts could disrupt the Strait of Hormuz, a critical oil and LNG chokepoint.
Additionally, the report suggests that the Middle East is on track to become the world's second-largest gas producer by 2025, ranking only behind North America.
Iran currently leads the Middle East in gas production, with Qatar and Saudi Arabia following closely behind.
The IEA also forecasts a 7 percent or 40 billion cubic meter increase in global LNG supply by 2026 as new projects come online in countries such as Qatar and the US.
In addition to these developments, the report points out that North America's LNG supply is expected to rise by 5.5 percent or 30 bcm for all of 2025, primarily driven by ramp-ups at major new LNG projects.
