Global Gas Demand Expected to Contract for the Third Time in Seven Years

The International Energy Agency reports that the recent war in the Middle East has caused disruptions in the natural gas market, resulting in a 0.5% decline in global gas demand this year. This is the third consecutive annual decline over the past seven years. Markets have been significantly impacted across the Strait of Hormuz, which accounts for about 20% of the world's liquefied natural gas supplies. Shipping activity continues to remain weak, with expectations that the effects of these disruptions will persist beyond 2026, especially given threats to delay Qatar's planned expansion projects and the widespread issues affecting global supply chains for gas and related materials.

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