By sector of activity, gas demand comes mainly from industry. This is in fact the sector that recorded the highest increase in the demand rate over the past year, with approximately 28 billion cubic meters of gas, an increase of 2.6% in one year.
Gas demand is expected to increase in the Middle East and Africa regions during the current year (2024), supported by increasing consumption in the transport, industrial and electricity sectors.
This is what the platform specializing in energy issues indicates. According to the same Source, demand in the Middle East could reach 645 billion cubic meters in 2024, while in Africa it would reach 1,470 billion cubic meters. Forecasts that come at a time when global demand for gas is expected to grow by 87 billion cubic meters during this year.
Overall, the expected growth in global gas demand will be driven by an increase in consumption in Asia of 43 billion cubic meters, in the Middle East of 29 billion cubic meters and in North America of 8 billion cubic meters. This represents an annual evolution of 4.3%, 4.7% and 0.7% for each of the three regions (respectively).
In 2023, demand increased by 59 billion cubic meters, a year-on-year growth of 1.5%, according to the latest data published by the International Gas Union. The increase in global gas consumption in 2023 is due to an increase in demand in Asia by 32 billion cubic meters and the Middle East by 28 billion cubic meters, as well as a growth in North American consumption of 14 billion cubic meters.
This increase in global gas demand exceeds the decrease in consumption in Europe by 31 billion cubic meters, as well as in Australia by about 2 billion cubic meters. This represents a decrease over one year of 6.3% and 3.7%.
By sector of activity, demand comes mainly from industry. This is in fact the sector that recorded the highest increase in the rate of demand for gas over the past year, with around 28 billion cubic meters, an increase of 2.6% in one year.
Next comes the electricity sector, which saw an increase in demand of 17 billion cubic meters of gas, or 1.7%, between 2022 and 2023. It is followed by the transport sector, with an increase of 7 billion cubic meters during the year 2023. That is a growth of 7.5% compared to 2022. The upward trend will continue this year, according to the same forecasts.
It is also worth noting that in 2023, gas demand in the Middle East increased, reaching 616 billion cubic meters, an increase of 4.7% year-on-year. The electricity and industrial sectors were at the origin of the growth in gas consumption in the region, with increased demand in Iran, Iraq, Saudi Arabia, the Sultanate of Oman and Qatar. By region, the Middle East saw the largest increase in gas demand in 2023 with a rate of 4.7%, followed by Asia at 3.3%, and then North America at 1.2%.
At the same time, gas demand in Africa increased by 5 billion cubic meters, reaching 169 billion cubic meters, an increase of 3.2% over one year, driven by the needs of the electricity and industrial sectors in Algeria and Egypt.
Also, according to the same Source, this growth in African demand was driven by the consumption of gas in the industrial sector of two billion cubic meters, at a rate of 6.8%, against one billion cubic meters of growth in the needs of the housing and electricity sectors, at a rate of 4.9% and 0.7%.
Brent rises slightly to nearly $72
Oil prices were gaining momentum yesterday, driven by a weakening dollar, a few days before a probable rate cut by the American Central Bank, and concerns about the state of supply. Around midday, the price of a barrel of Brent from the North Sea, for delivery in November, rose by 0.25% to 71.79 dollars.
Its U.S. counterpart, West Texas Intermediate (WTI) for October delivery, rose 0.38% to $68.91 a barrel. Crude was trading slightly higher at the start of trading, supported by factors including a weaker dollar and lingering concerns about tighter global supply due to cuts in U.S. crude output, analysts said.
The market is indeed banking on a cut in interest rates by the US Federal Reserve (Fed) tomorrow. The prospects of a more significant rate cut than initially envisaged weighed on the greenback yesterday, which tends to favour purchases of crude oil, denominated in this currency. For its part, Hurricane Francine did not cause major damage according to the heavyweights of oil exploitation in the region, and the resumption of production and refining activities continues.
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