Asia’s gas demand to remain flat in 2022: report

The region is expected to post a modest recovery of 3% in 2023.

Gas consumption in Asia slowed significantly so far due to the high liquefied natural gas prices, pandemic-related disruptions in China, and mild winter temperature in Northeast Asia earlier this year, and will remain flat for this year.

In a report, the International Energy Agency (IEA) said this is coming from a 7% demand growth in 2021, but the region will see a modest recovery of 3% in 2023, if the pandemic situation normalised and economic activities bounce back in China.

China’s gas consumption increased by less than 1% year-on-year from January to August due to mild winter temperatures, slowing economic growth, price-driven demand destruction and widespread pandemic-related lockdowns.

Overall gas consumption for the year is expected to rise by less than 2% due to the “very modest growth” on the back of the industrial sector which activities are expected to recover in the second half of the year.

India’s consumption was down 4% YoY during the same period due to high prices of imported LNG and domestic gas. For 2022, the country’s consumption is expected to be down by 1.5% YoY and expected to post a 2% increase in 2023 due to growing demand in the industrial and city gas segments.

Meanwhile, in emerging Asian markets, demand slowed from January to July due to high energy prices and falling domestic supply, led by Thailand–the region’s largest gas user accounting for one-fifth of the total consumption–which was down by 12% YoY.

The IEA said Indonesia was an outlier with a 5% YoY increase in the same period as it saw recovering economic activity and the low coal availability earlier this year.