Global natural gas demand is projected to decline by 0.5% in 2026 as tighter supplies and higher prices curb consumption across major markets, according to the International Energy Agency’s (IEA) latest Gas Market Report.
The IEA said global gas consumption is on track to contract for the third time in seven years, driven by weaker demand from the power and industrial sectors.
The downturn follows disruptions to LNG shipments through the Strait of Hormuz, a critical route that previously handled about 20% of global LNG trade.
Although LNG tanker traffic has gradually resumed following a temporary ceasefire between the United States and Iran, volumes remain below pre-conflict levels, while gas prices in Asia and Europe continue to stay well above 2025 averages.
The report notes that LNG production from Qatar and the United Arab Emirates fell by nearly 80% during March-June compared with the same period last year.
However, increased output from new LNG projects in North America, Africa and Australia is expected to keep global LNG supply broadly stable for the year.
