Global natural gas consumption is
forecast to fall 0.5% this year, mainly because higher prices
are curbing demand from power generators and industry after the
U.S.-Iran conflict tightened supplies, the International Energy
Agency (IEA) said on Tuesday.
* Global gas demand is expected to fall by around 0.5%, or
20 billion cubic metres, in 2026, marking the third annual
decline this decade after decreases in 2020 and 2022, the IEA
said in its third-quarter 2026 Gas Market Report.
* Gas demand in Asia fell around 1% year-on-year in the
first half of 2026 as higher prices encouraged fuel switching,
particularly to coal in the power sector.
* Europe’s benchmark TTF price and Asia’s Platts JKM
benchmark both recorded their highest average second-quarter
prices since 2022. TTF rose 32% year-on-year to average nearly
$16 per million British thermal units, while spot LNG prices in
Asia increased 45% to an average of $17.5/mmBtu.
* The U.S.-Iran conflict has sharply reduced liquefied
natural gas flows through the Strait of Hormuz, a shipping route
that typically carries about 20% of global LNG supplies.
* Global LNG supply for the full year is expected to be
broadly unchanged from 2025 as increased production in other
regions offsets disruptions in the Gulf.
* However, if the Strait is not fully reopened before the
start of the fourth quarter, global LNG supply could record its
first annual decline since 2012, the report said.
* LNG supply from Qatar and the United Arab Emirates has
fallen sharply, with output down almost 80% in the March-June
period compared with the same four months in 2025.
Published on July 7, 2026
