Global demand for natural gas only marginally recovered from the shock caused by the cut in Russian natural gas supply a year earlier

After a 1.5% decline in 2022, marked by the gas supply crisis caused by the Russia-Ukraine war, global natural gas consumption recovered slightly in 2023, with an estimated growth rate of 0.6%. The Russian gas crisis has led to tense market conditions as global LNG supply growth was too limited to compensate for the cut of Russian gas supplies to Europe. However, a number of economic, technological and weather factors eased the market and tempered the pressure on both demand and prices in 2023.  Europe stands out with a very steep decline in demand to its lowest level since 1995. Driven by this steep reduction in natural gas demand and record-high gas storage levels, European gas prices fell considerably while remaining highly volatile. Asian spot LNG prices followed a similar trajectory. The global market experienced a gradual rebalancing throughout 2023 and natural gas storages closed the year at or near the top of the five-year range in all three key regions (North America, Europe and Northeast Asia).


Biomethane in full gear

CEDIGAZ has just published its 2024 annual report on the global biomethane market which focuses on recent trends in global and regional biomethane markets in 2023. According to CEDIGAZ, global biomethane production expanded to 7.7 billion cubic metres (bcm) in 2022, a growth of 20% compared to 2021, driven by Europe and North America. It is estimated at 9.5 bcm in 2023, an increase of 23%. Driven by strong structural policy and market drivers, the biomethane market is poised for a huge expansion over this decade and beyond. The targets announced by regional and national governments around the world exceed 100 bcm/y by 2030. Reaching this ambitious level requires the adoption of the right policy and regulatory framework, an acceleration of support, and faster permitting, which many governments have put in place in 2023.

Canada’s Clean Hydrogen Pathway: Harnessing multiple assets for global leadership

The International Association Cedigaz has just released its Hydrogen Market Review: “Canada’s Clean Hydrogen Pathway: Harnessing multiple assets for global leadership”, which assesses market developments, policies and prospects of the hydrogen industry in Canada. The report also provides information on Canadian clean hydrogen projects.