Gas
Global gas demand projected to grow through 2035
Global natural gas demand is set to rise nearly 20 percent by 2035, driven largely by power generation and Asian markets.
Key points
- GlobalData reports world gas demand will reach 5,180 bcm by 2035, growing at a CAGR of 1.8 percent.
- Power generation will account for nearly half of the projected increase in demand.
- Export infrastructure constraints, rather than resource shortages, pose the primary challenge for the next decade.
What happened
Global natural gas demand will continue to expand through 2035, increasing by almost a fifth according to a newly released market outlook report from GlobalData. Rigzone reported that power generation will absorb roughly half of this growth. Meanwhile, analysts at BMI noted that the international liquefied natural gas (LNG) market has faced near-term volatility due to supply shocks in the Middle East and disruptions in the Strait of Hormuz.
Why it matters
According to GlobalData, the anticipated LNG supply glut will arrive later and dissipate sooner than previously expected. While a transit shock in 2026 temporarily restricted Middle Eastern production and elevated prices, production is anticipated to normalize as Gulf exports return. The Henry Hub gas spot price stood at 3.22 US dollars per MMBtu on 14 October 2026, according to US EIA figures cited by CEII. Analysts emphasize that the defining factor for the coming decade will be the timely development of export infrastructure and pipelines rather than underground reserves.
What comes next
GlobalData projects that new liquefaction capacity will drive a supply surplus peaking around 2029 before growing demand absorbs the excess. The market is expected to balance by 2034 and turn short by 2035. Regions such as Senegal, Tanzania, Mauritania, Guyana, and Cyprus account for a significant portion of upstream supply lacking sanctioned routes to market, highlighting the critical need for infrastructure investment.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
21.9% of electricity in the world came from gas in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
