Higher prices to slow growth in fossil fuels
The International Energy Agency says high prices for natural gas and supply fears due to the war in Ukraine will slow the growth in demand for fossil fuels in the coming years.
In a report published Tuesday, the Paris-based agency forecast global demand for natural gas will rise by 140 billion cubic meters between 2021 and 2025. That’s less than half the increase of 370 bcm seen in the previous five-year period, which included the pandemic downturn.
The revised forecast is mostly due to expectations of slower economic growth rather than buyers switching from gas to coal, oil or renewable energy. While the burning of gas emits less planet-warming carbon dioxide than other fossil fuels, methane released during the extraction process is a significant driver of climate change.
“Russia’s unprovoked war in Ukraine is seriously disrupting gas markets that were already showing signs of tightness,” said Keisuke Sadamori, the agency’s director of energy markets and security.