Global Natural Gas Demand to Decline in 2026 as Supply Tightens and Prices Rise

SEATTLE (Oil Monster): Global natural gas consumption is expected to decline in 2026 as supply constraints and higher prices are likely to reduce demand across major markets, according to the latest quarterly report released by the International Energy Agency (IEA).

The agency forecasts worldwide gas demand to fall by 0.5% this year. This will be the third annual decline in the past seven years. The reduction in the use of gas in electricity generation and industrial operations will lead to a decline.

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The report notes that continued disruptions linked to the Middle East conflict, particularly around the Strait of Hormuz, have badly impacted global liquefied natural gas (LNG) shipments. Although LNG traffic has improved following a temporary easing of regional tensions, shipping activity remains below normal levels, it said.

Gas demand weakened during the first half of 2026, especially in the Middle East. Higher fuel prices and the switch to alternative energy sources also lowered gas demand in several Asian countries.

According to the IEA report, LNG exports from Qatar and the United Arab Emirates dropped sharply during the March-June period. However, increased production from new projects in North America, Africa, and Australia is expected to offset much of the decline this year.