Gas Market Report,
Q2-2023

INTERNATIONAL ENERGY AGENCY
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Argentina
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MoroccoSingapore
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ThailandUkraineAbstract

Gas Market Report, Q2-2023

Abstract
Pressure on the European and global gas markets has eased since
the beginning of 2023 due to favourable weather conditions andtimely policy actions. By the end of Q1 2023 European hub andThis new issue of the quarterly Gas Market Report provides an
overview of recent gas market developments during the 2022/23
heating season, with a forecast for 2023.

Asian spot liquefied natural gas (LNG) prices had fallen below theirsummer 2021 levels, albeit remaining well above their historic
averages. The steep decline in natural gas demand reduced theneed for storage withdrawals in Europe and the United States overthe 2022/23 winter. As a result, storage sites closed the heating
season 1 with inventory levels standing well above their five-year
average. This is expected to reduce injection demand during thesummer of 2023, and potentially ease market fundamentals.
The improved outlook for gas markets in 2023 is no guarantee
against future volatility and should not be a distraction frommeasures to mitigate potential risks. Global gas supply is set toremain tight in 2023 and the global balance is subject to an
unusually wide range of uncertainties. These include adverse
weather factors, such as a dry summer or a cold Q4, lower
availability of LNG and the possibility of a further decline in Russian
pipeline gas deliveries to the European Union.

The heating season (or gas winter) in the markets of the Northern Hemisphere refers to the period
between 1 October and 31 March.
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1

Table of contents

Gas Market Report, Q2-2023

Table of contents
Executive summary ........................................................................................ 5…accounting for two-thirds of imports during the 2022/23 heating
season .................................................................................................. 26

Gas market update and short-term forecast ................................................11

Global LNG demand moderated in Q1 while remaining strong inEurope .................................................................................................. 27

Gas demand increased in North America during the winter, but is
expected to contract in 2023.................................................................12

The United States is set to drive LNG supply growth in 2023 .............. 29

Growth in US gas consumption during the past winter was sustained bypower generation and heating needs during cold weather in Q4 .........13

Not feeling the heat: Gas prices moderated significantly during the2022/23 winter ...................................................................................... 30

Gas consumption saw a limited decline in Central and South America
in 2022, and is expected to stabilise in 2023 ........................................14

Asian spot LNG and TTF prices are expected to remain above their
historic averages in 2023 ..................................................................... 31

Declines in gas demand in Argentina and Brazil in 2022 were almost
balanced by growth in other Central and South American markets .....15

Mild winter and low gas demand depressed storage withdrawals overthe 2022/23 winter season ................................................................... 32

Gas use for power generation remains low in Brazil in Q1 2023 onstrong hydro availability and limited electricity demand growth ............16

Storage levels closed the 2022/23 heating season well above their fiveyear average ......................................................................................... 33

European gas demand dropped by a record 55 bcm during the 2022/23
heating season......................................................................................17

In the European Union storage injections equal to half of last year’s
would suffice to reach 90% fill levels by the start of the 2023/24 heating
season .................................................................................................. 34

Mild weather, energy saving measures and lower gas use in industry
weighed on gas demand .......................................................................18
Asian gas demand came under pressure in 2022; recovery in 2023 is
expected to be modest .........................................................................19

Spotlight on e-methane................................................................................ 35

Widespread declines in demand in Asia during 2022 are set to befollowed by an uneven recovery in 2023 ..............................................21

E-methane is characterised by a complex value chain with substantial
efficiency losses ................................................................................... 39

US natural gas output maintains its growth, driven by Permian oildriven production ..................................................................................22

E-methane’s high production costs require further technologicaldevelopment and policy support........................................................... 40

US natural gas production remained close to the record 100 bcf/d markduring Q1 2023 .....................................................................................23

Japan: A first mover in the e-methane space ....................................... 41

E-methane: A gas fit for net zero?........................................................ 36

Japan has set a target for e-methane to meet 90% of its city gas supply
by 2050 ................................................................................................. 43

US natural gas production keeps growing in 2023,
but at a slower pace ..............................................................................24

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Japan is actively developing international value chainsfor e-methane ....................................................................................... 44

LNG became a baseload supply for Europe… .....................................25

Table of contents

Gas Market Report, Q2-2023

Annex ...........................................................................................................45
Summary table ......................................................................................46
Regional and country groupings ...........................................................47
Abbreviations and acronyms ................................................................48
Units of measure ...................................................................................48

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Acknowledgements, contributors and credits .......................................49

Executive summary

Gas Market Report, Q2-2023

Executive summary
The latest estimates indicate that global gas consumption fell
by 1.5% in 2022 – similar to the drop experienced in 2020

A gradual rebalancing of natural gas markets
Global gas markets moved towards a gradual rebalancing overthe 2022/23 heating season, following the supply shock
sparked by Russia’s invasion of Ukraine in February 2022. Spotsites ended the heating season well above their five-year averages.

following the first wave of Covid-19 lockdowns. The bulk ofdemand reduction was concentrated in the key European and Asian
import markets. The sharp increase in gas prices supported gas-tocoal switching dynamics in the power sector and depressed gas use
in energy-intensive industries. Enhanced energy efficiency
measures and the continued deployment of renewables reducedgas demand in a structural manner.

The reduced market strains and relatively well stocked storagesites ahead of the summer are reasons for cautious optimism
for supply security. However, this confluence of factors should not
distract from the further measures needed to mitigate potential risks
that could quickly renew market tensions and price volatility.

The strong decline in gas demand continued into the earlymonths of 2023 due to favourable weather conditions andtimely policy actions. Natural gas consumption in advanced
economies in Europe fell by an estimated 55 billion cubic metres(bcm) year-on-year during the 2022/23 heating season – its

The European and global gas markets suffered a major supply
shock in 2022 when Russia sharply reduced its pipeline gasdeliveries to the European Union – by 80% over the course of
the year – and triggered a global energy crisis. Russia’s steep
gas supply cuts led to a reconfiguration of global LNG flows, droveup natural gas prices to all-time highs both in Asia and Europe andnecessitated a readjustment in gas demand.

steepest drop in absolute terms for any winter season on record.

gas prices across the key northeast Asian, North American andEuropean markets dropped by close to 70% between midDecember and the end of the first quarter of 2023, while storage

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The steep decline in natural gas demand reduced the need forstorage withdrawals in Europe and the United States over the2022/23 winter. In the European Union, storage injections equal to
only half of the level seen in summer 2022 would be enough toreach the EU target of filling storages to 90% by the start of the2023/24 heating season. Lower injection demand over summer
2023 could potentially contribute to a further easing of market
fundamentals.

Executive summary

Gas Market Report, Q2-2023

Market tensions have moderated significantly since mid-December 2022

% change compared to 15 December 2022

Evolution of key regional key gas markets since 15 December 2022
0%
TTF

Henry Hub

Asian spot LNG

-20%

-40%

-60%

30-Mar-23

23-Mar-23

16-Mar-23

09-Mar-23

02-Mar-23

23-Feb-23

16-Feb-23

09-Feb-23

02-Feb-23

26-Jan-23

19-Jan-23

12-Jan-23

05-Jan-23

29-Dec-22

22-Dec-22

15-Dec-22-80%

IEA. CC BY 4.0.

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Sources: IEA analysis based on CME (2023), Henry Hub Natural Gas Futures Quotes, CME (2023), Dutch TTF Natural Gas Month Futures Settlements; ICIS (2023), ICIS LNG Edge.

Executive summary

Gas Market Report, Q2-2023

Global gas supply is set to remain tight in 2023 amid
lower Russian pipeline gas deliveries to Europe

muted domestic demand are expected to further reduce Russia’s
output by over 50 bcm in 2023, adding to the challenges facing theRussian gas industry.

Global LNG supply is forecast to increase by a mere 4% (orover 20 bcm) in 2023. This would not be sufficient to offset the
expected reduction in Russia’s piped gas supplies to Europe.

Global gas demand is expected to remain broadly flat in
2023

The United States is projected to account for over half of the
global supply increase in 2023 and become the world’s largest
LNG exporter. This growth will be supported primarily by the

Global gas demand is expected to remain flat in 2023, withhigher demand in Asia Pacific and the Middle East offsetting
the expected declines in Europe and North America. In Asia,
gas demand is projected to increase by close to 3%, with China andIndia as the main drivers. Gas demand in China is forecast to
increase by over 6% in 2023, supported by a recovery in economic
activity and potentially higher gas use in industry. In the Middle
East, gas demand is forecast to increase by 2%, driven by Iran andSaudi Arabia. Gas demand in advanced economies in Europe is
projected to decline by 5% as rapidly expanding renewables weighon gas-fired generation. After strong growth in 2022, gas demand in
North America is expected to decline by 2% as a result of lower gas

ramping up of the Calcasieu Pass LNG terminal and the restart ofFreeport LNG, which returned to full service at the end of the firstquarter of 2023. In addition to the United States, LNG supply fromAfrica and South and Central America is projected to increase byclose to 10 bcm amid improving feed gas availability and theramping up of the Coral South and Congo floating LNG plants. By
contrast, Russia’s LNG output is expected to decline. Sakhalin-II
LNG’s project operator announced in February 2023 that the plant
will move away from the "peak load" strategy it has been pursuingin the last few years, while production from YAMAL LNG is
expected to decline by 5% year-on-year in 2023.

use for space heating, power generation and industry.

China gradually recovers its appetite for LNG, although
imports are set to remain below their 2021 levels

The level of Russian pipeline gas supplies is a major
uncertainty for the remainder of 2023. If flows to the European
Union continue at the levels seen in the first quarter, Russian pipedgas deliveries to advanced economies in Europe would drop by
45% (or over 35 bcm) in 2023 compared with 2022. Following a 90
bcm drop in Russian gas production in 2022, lower exports and
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China’s LNG imports declined by an unprecedented 20% in
2022, enabling higher LNG deliveries to the European market.
China’s LNG import growth recovered to double-digit growth inMarch 2023, supported by higher domestic gas demand. The

Executive summary

Gas Market Report, Q2-2023

As a result, there is a continued need to reduce gas demand ina structural manner through improved energy efficiency measures,
accelerated deployment of renewables and heat pumps, as well as
behavioural changes. Short-terms options to enhance gas supply

country’s LNG inflows are expected to increase by 10-15%
compared with 2022 while remaining below their 2021 levels.
LNG became effectively a new baseload supply for Europe,
accounting for two-third of the region’s imports and meeting around
one-third of its gas demand through the 2022/23 winter season.
After strong growth in Q1 2023, OECD Europe’s LNG imports are

and optimise the use of gas infrastructure should be promoted,
including via the reduction of methane leaks and gas flaring.

expected to decline for the remainder of the year amidst lower
injection needs and a continued decline in European gas
consumption.

E-methane: A gas fit for net zero?
Beyond the immediate security of supply concerns, there is aclear and urgent need for policy makers and the private sector
to promote effective ways to decarbonise gas supply. Emethane is interchangeable with natural gas and would limit theneed for retrofitting existing natural gas plants and networks while
enhancing system and seasonal flexibility. As part of the IEA’s LowEmission Gas Work Programme, this quarterly edition of the Gas
Market Report provides an in-depth overview of the developments
related to e-methane. E-methane’s high production costs require

Grounds for cautious optimism
Pressure on the European and global gas markets has eased
since the beginning of 2023 due to favourable weather conditions
and timely policy actions. The improved outlook for gas markets in
2023 is no guarantee against future volatility and should not be a
distraction from measures to mitigate potential risks.

further technological development and policy support, including
through closer dialogue between future producers and consumers.

Global gas supply is set to remain tight in 2023, and the global
balance is subject to an unusually wide range of uncertainties.
The risks include adverse weather factors, such as a dry summer orcolder-than-usual end of the year, lower availability of LNG, and thepossibility of a further decline in Russian pipeline gas deliveries toEurope. These factors could easily renew market tensions and price

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volatility.

Executive summary

Gas Market Report, Q2-2023

Global gas supply is set to remain tight in 2023

Y-o-y change in bcm

Year-on-year change in global natural gas supply (2019-2023)
90
60
30
0
- 30
- 60
- 90

2019
2020
Russia - pipeline flows to Europe
Russia - pipeline flow to China
LNG supply

2021

2022
2023
Others - pipeline flows to Europe
Central Asia -pipeline flows to China
Net change
IEA. CC BY 4.0.

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IEA. CC BY 4.0.

Sources: IEA analysis based on ENTSOG (2023), Transparency Platform; Eurostat (2023), Energy Statistics; General Administration of Customs of People’s Republic of China (2023),
Customs Statistics; ICIS (2023), ICIS LNG Edge; JODI (2023), Gas World Database.

Executive summary

Gas Market Report, Q2-2023

Global gas growth turned negative in 2022, flat and uncertain for 2023
Change in global natural gas demand per calendar year, 2020-2023
Breakdown by region

Breakdown by sector

200

bcm

bcm

200

100

100

0

0

- 100

- 100

2019-20

2020-21

AfricaCentral and South America
EuropeNorth America

2021-22- 200

2022-23

Asia PacificEurasia
Middle EastWorld

2019-20

2020-212021-22

Power generation

Industry

Residential and commercial

Energy sector

Transport

All sectors

2022-23

IEA. CC BY 4.0.

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- 200

Gas market update and short-term forecast

Gas Market Report, Q2-2023

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Gas market update and short-term forecast

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Gas demand increased in North America during the winter, but is expected to contract in 2023
During the winter season of 2022/23 the United States saw anestimated 0.6% year-on-year (y-o-y) increase in its consumption ofnatural gas. As temperatures plummeted in December, the end of
the year saw a dramatic rise in the demand for natural gas forcommercial and residential heating. The first quarter of 2023,
however, saw a significant reversal, with mild temperatures nearlyreversing the increase in demand over the previous year’s winterseason. Overall, natural gas consumption saw a 5.3% rise in 2022,
driven by the use of natural gas for power generation. This was
stimulated by the need for cooling, which can be attributed to hightemperatures during the summer months.

The industrial sector experienced a 2.1% decrease in natural gas
consumption during winter 2022/23 relative to winter 2021/22, albeit
at a relatively stable rate.
Gas consumption in Canada increased by close to 7% in 2022.
Both wholesale customers (large industry and power generators)
and residential and commercial customers contributed to thisgrowth. The switch away from coal in the power generation mix has
been gradually pushing demand for natural gas upwards. The
winter season started with a rise in residential and commercial
natural gas consumption (up 7.5% y-o-y in Q4 2022) due to lower
than average temperatures, but this trend could potentially be
counteracted in the first quarter of 2023 as temperatures werehigher than average. Mexico’s apparent natural gas consumption
remained stable y-o-y during the period from October 2021 toJanuary 2022.

Furthermore, the retirement of coal-fired power plants and relatively
high coal prices, along with lower than average coal stocks, caused
coal consumption for power generation to decrease, leading to aswitch in favour of natural gas for electricity generation. This
resulted in natural gas accounting for 38.0% of the power mix on
average during the winter period, or a 3 percentage point increaseover the previous winter, while coal fell to 18.4%, a drop of
2.5 percentage points.
In addition, abnormally low temperatures – especially during thearctic front that swept across the country in late December causing
heavy rain and snow – greatly added to the rise in the use of natural
gas for residential and commercial heating. In stark contrast,
January saw unseasonably mild temperatures, setting new records
for the warmest month, offsetting the trend.

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North American gas consumption is expected to decrease by about
2.9% in 2023. In the United States, slower economic growth is set
to depress gas demand in industry, while an unseasonably mild Q1
reduced gas use in the residential and commercial sectors,
weighing on the outlook for the full year. The economic slowdown
coupled with the strong expansion of renewables is set to reducethe call on gas-fired power plants, although continued coal-to-gas
switching could moderate the overall decline in gas demand for
power generation.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Growth in US gas consumption during the past winter was sustained by power generation andheating needs during cold weather in Q4
Gas consumption by sector, United States,
winter 2022/23 relative to winter 2021/22

130
14%

120

12%

110

10%

5%

10%

4%

60

2%
Oct

Nov

2021/22Dec

Jan

2022/23

Feb

Mar

0%

Y-o-y change (%)

Total consumption

70

-5%

Residential and commercial

6%80

Industry

8%

90

0%

Power generation

100

50

Y-o-y change

bcf/dMonthly natural gas consumption, United States,
winter 2021/22 and 2022/23

IEA. CC BY 4.0.‘

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Sources: IEA analysis based on EIA (2023), Natural Gas Consumption; Natural Gas Weekly Update.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Gas consumption saw a limited decline in Central and South America in 2022, and is expected
to stabilise in 2023
Natural gas consumption in the Central and South America region isestimated to have fallen by close to 1.5% in 2022, primarily due tolower need for gas for power generation in Brazil after record
droughts in 2021. It is expected to stabilise in 2023 with a limited
decline of less than 1% as higher hydro availability (as of the end of
Q1) further reduces gas for power needs, partly compensated byclose to 70% on strong hydro recovery. Gas consumption for thewhole of 2022 declined by an estimated 22% y-o-y, dragged down
by a steep 61% drop in gas use for power generation, while
demand from industry and retail customers increased by 7% and
5% respectively. Operational data show that hydroelectricity
increased by 4.2 TWh y-o-y (up 4%) in the first quarter of 2023

limited growth among industrial consumers.

against only 2.6 TWh (up 2%) for total electricity generation,
resulting in an estimated 6 TWh drop in gas-fired generation (down62%).

Argentina’s gas consumption declined by about 2% y-o-y in the
fourth quarter of 2022 after registering a 3% increase in the firstnine months of the year, as demand growth from the industrial
sector turned negative in the final months of 2022. The power
generation sector, which accounts for close to 30% of total gas
consumption, experienced an 11% decline in 2022 due to modest
growth in electricity demand and a rebound in hydro generationfrom the low levels of 2021. This was partly offset by increases fromthe industrial sector (up by 6%) and the residential and commercial
sector (up by 3%), which account for a quarter of total gas demand
each. Domestic production grew by 3% in 2022, supported by a
14% increase in the Vaca Muerta shale basin in Neuquén province,
which contributed to a 26% reduction in natural gas imports.

Gas production in Trinidad and Tobago increased by 4% in 2022
while LNG exports recovered by 19% y-o-y, leading to an estimateddecline in domestic consumption of close to 3%. Apparent gas
consumption grew by 10% in Central America and the Caribbean
in 2022, and LNG imports almost doubled during the October 2022
to February 2023 period, supported by strong increases in Jamaica
and Panama. Bolivia, Chile and Peru reported a 10% increase in
their respective gas demand in 2022. Colombia saw its gas
consumption increase by 5% over the same period, although early2023 data show a 6% y-o-y decline for the first two months of theyear.

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The decline in gas use in Brazil further accelerated in Q4 2022 witha 29% y-o-y slide, as gas burn for power generation dropped by

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Declines in gas demand in Argentina and Brazil in 2022 were almost balanced by growth inother Central and South American markets
Monthly natural gas consumption, Central and South America, 2021-2022

16

bcm

14
12
10
8
6
4
2
0

J

F

M

A

M

J

J

A

S

O

N

D

J

F

M

A

2021
Argentina

BrazilVenezuela

M

J

J

A

S

O

N

D

2022
Trinidad and Tobago

Colombia

Chile

Peru

Bolivia

Other
IEA. CC BY 4.0.

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Sources: IEA analysis based on ANP (2023), Boletim Mensal da Produção de Petróleo e Gás Natural; BMC (2023), Informes Mensuales; Central Bank of Trinidad and Tobago (2023),
Statistics; CNE (2023), Generación bruta SEN; ENARGAS (2023), Datos Abiertos; ICIS (2023), ICIS LNG Edge; IEA (2023), Monthly Gas Data Service; JODI (2023), Gas Database;
MME (2023), Boletim Mensal de Acompanhamento da Industria de Gás Natural; OSINERG (2023), Reporte diario de la operación de los sistemas de transporte de gas natural.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Gas use for power generation remains low in Brazil in Q1 2023 on strong hydro availability andlimited electricity demand growth
50

2.0

40

1.6

30

1.2

20

0.8

10

0.4

0

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M
2020

2021
LNG imports

Hydro generation

2022

LNG imports (bcm)Electricity generation (TWh)

Monthly hydro and gas-fired electricity production and LNG imports, Brazil, 2020-2023

0.0

2023

Gas-fired generation
IEA. CC BY 4.0.

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Sources: IEA analysis based on EPE (2023), Monthly Review of the Electricity Market; ICIS (2023), ICIS LNG Edge; ONS (2023), Power Generation.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

European gas demand dropped by a record 55 bcm during the 2022/23 heating season
Natural gas consumption in OECD Europe fell by an estimated 16%(or 55 bcm) y-o-y during the 2022/23 heating season – its steepest
drop in absolute terms for any winter season in our records. Highhomes in the European Union stood at 6.9% in 2021. This situation
is expected to have significantly worsened during the 2022/23
winter season.

gas prices continued to weigh on gas use in industry, while milder
weather conditions – together with energy saving measures –depressed distribution network-related demand and gas burn in theGas burn for power generation declined by an estimated 12%(10 bcm) y-o-y during the 2022/23 heating season. This was largely
driven by lower electricity consumption, which fell by close to 7%(90 TWh), its largest drop in absolute terms for any winter season in
our records. Milder weather, energy saving measures and lower
electricity use in industry were the main drivers behind this sharp
decline. Gas demand in industry fell by close to 20% (20 bcm) y-o-yduring the winter season, with high prices leading to continued fuelswitching and reduced operating rates in the most gas-intensive
industries. The steep drop in gas prices in Q1 2023 supported gas
use in industry, which increased by an estimated 20% compared

power sector.
Distribution network-related demand fell by 16% (or 25 bcm) y-o-yduring the 2022/23 winter season, accounting for around 45% of thetotal reduction in OECD Europe’s gas consumption. Heating degreedays stood 7% below their 2021/22 levels, weighing on spaceheating requirements in the residential and commercial sectors.
Notably, unseasonably mild temperatures in October and the firsthalf of November delayed the start of the European heating season
by almost a month. Nevertheless, weather-related factors explain
only 40% of the demand decline experienced in the residential andcommercial sectors. Gas-saving measures enacted in publicbuildings (such as mandatory temperature controls), fuel-switchingin rural households (including to biomass, fuel oil and waste), theinstallation of heat pumps, efficiency gains and behaviouralchanges all played a critical role in reducing distribution networkrelated demand. Rising affordability issues also contributed to lower
gas use in households. The share of people unable to heat theirwith Q4 2022.

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OECD Europe’s gas demand is forecast to decline by 5% in 2023.
This is largely driven by lower gas burn in the power sector, down
by close to 15% amid rapidly expanding renewables. Gas use inindustry is expected to recover by close to 5% as lower gas prices
enable demand recovery in the second half of the year. Considering
the declines seen in Q1, demand in the residential and commercial
sectors is expected to fall by 4% in 2023.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Mild weather, energy saving measures and lower gas use in industry weighed on gas demand

Y-o-y change in bcm

Estimated y-o-y change in gas demand by sector, OECD Europe,
2021/22 heating season vs 2022/23 heating season
0
Weather- 20

Fuel switching
Efficiency
Affordability
Behaviouralchanges
Lower electricity
demandHigher hydroProduction
curtailments- 40

Fuel switching
Efficiency
gains

- 60

Residential
and commercial

Power

Industry2022/23

IEA. All rights reserved.

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Sources: IEA analysis based on Enagas (2023), Natural Gas Demand; ENTSOG (2023), Transparency Platform; EPIAS (2023), Transparency Platform; Trading Hub Europe (2023),
Aggregated consumption

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Asian gas demand came under pressure in 2022; recovery in 2023 is expected to be modest
effective production. The decrease in gas use for power generationis also explained by the record growth in the share of renewableenergy in the electricity mix. The city gas segment recovered in
January and February 2023, with a 7% increase y-o-y due to theresumption of economic activity post reopening. In 2023 China’s
gas consumption is expected to rebound by 5-7%, led by theindustrial sector, although the rate is highly uncertain. 2023’s
demand increase is fuelled by the expected recovery of economic
activity following the easing of Covid-19 lockdown restrictions.
Fresh LNG procurement is expected to be sluggish due to the
combined effect of the introduction of newly signed long-term LNG
purchase contracts, increased domestic production and pipeline gas
imports.

Asia’s gas consumption experienced an unprecedented slowdown
of 2% in 2022 because of high LNG prices, Covid-related disruption
in the People’s Republic of China (hereafter “China”) and mild
weather for most of the year in Northeast Asia. This trend wasconfirmed in January 2023 with a decrease of 2% y-o-y. Asian gas
demand is projected to return to modest growth of around 3% in
2023 due to the lifting of China’s zero-Covid policy, an assumptionof normalising weather and the modest recovery of gas
consumption in India and emerging Asia after steep declines in
2022.
China’s gas consumption decreased by 1-2% in 2022, dependingon the source of the data (from the Chongqing Petroleum and Gas
Exchange or from the NDRC). In 2023 natural gas demanddecreased by 4% y-o-y in January and increased again by 4% y-o-yin February. For the first two months of 2023 natural gas demand
globally decreased very slightly by 0.1%. This drop in demand in thefirst two months of 2023 was led by industry, with a 9% decrease yo-y, and the power sector, with a 6% decrease y-o-y. China’s coal
imports reached record levels during the first quarter of 2023; thistrend may continue throughout the year supported by the extensionof the provisional “zero” import tax policy until the end of 2023 aspart of Beijing safeguarding its energy security. The largest coalports in China are located on the east coast, where some of China’s
largest LNG import terminals are based. Power producers and large
industrial plants in the area can switch between coal and natural
gas for their energy generation needs to achieve the most costPAGE | 19

IEA. CC BY 4.0.

India’s gas consumption declined by 6% in 2022 as soaring prices
squeezed gas demand for power generation (down 24% y-o-y) andrefining (down 30% y-o-y), and from the petrochemicals sector(down 32% y-o-y). City gas demand was broadly flat, while
consumption in the fertiliser segment and other end uses (which
include agriculture, upstream operations and other industries) saw
modest expansion during 2022, although not enough tocompensate for the steep declines in the more price-sensitive
sectors of the economy. India’s LNG imports dropped by 17% in
2022, the steepest fall on record and the first decline covering
two consecutive years in India’s two-decade history as an LNG
importer. Price-driven fuel-switching played the leading role in
suppressing LNG demand, but a modest 3% increase in domestic

Gas market update and short-term forecast

Gas Market Report, Q2-2023

is projected to continue in 2023 as total gas demand is set todecrease by 2%. Growing gas use in the industrial and city gas
sectors is expected to offset only partially the decline in gas
demand for power generation, driven by the start-up of new coalfired generation and additional nuclear output, such as from
Shin Hanul 1 and 2.

production also contributed to the decrease in LNG inflows. In
January 2023 natural gas demand in India increased by 14% y-o-y,with a significant increase in the city gas sector (up 70% y-o-y) andthe recovery of the fertiliser sector (up 13% y-o-y) along with thepower sector (up 5%) amid lower gas prices. In 2023 total gas
consumption is expected to increase by 4% thanks to a modest
recovery in power sector gas use and continuing – albeit slow –growth in the industrial and city gas sectors.

Emerging Asia’s gas consumption dropped by 4% in 2022, as highimport prices combined with falling domestic supply from some of
the region’s legacy producers put pressure on demand. Thailand,
the region’s biggest gas consumer, recorded a 10% y-o-y drop in its
gas use in 2022, with most of the decline concentrated in the power
sector and the domestic energy industry. Indonesia, the number two
consumer in emerging Asia, saw an overall 2% y-o-y decrease in
2022. Y-o-y readings turned mostly negative from mid-2022 inemerging Asia, and gas demand fell by 12% in the period July to
November 2022 (with power and industry both contributing to thedecline), a sharp contrast to the 6% y-o-y growth recorded in H1
2022. Gas demand was also severely curtailed in Pakistan and
Bangladesh, with a combination of power cuts and switching toalternative fuels as spot LNG became practically unaffordable forthe two South Asian importers. In 2022 LNG imports into Pakistan
and Bangladesh dropped by 18% and 17% respectively, thesharpest annual decline in both countries’ brief history as LNG

Japan’s gas consumption decreased by 1% in 2022, with declines
in power generation partially offset by increases in other sectors
such as commerce and industry. City gas sales for commercial andindustrial use increased by 7% and 3% respectively, according todata from METI. Total electricity demand rose by 1% y-o-y, despitea sharp 15% y-o-y reduction in nuclear generation due to the
shutdown of reactors requiring periodic or special inspection.
Thermal generation from gas and coal, which account for a
combined share of more than 65% of the Japanese electricity mix,
compensated for this loss. In 2023 Japan’s gas consumption is
expected to decrease by 3%, driven by the power sector, as
growing nuclear and renewables reduce the need for gas-fired
electricity. The increase in nuclear output is due to the improved
operating rate of plants in production and the restart of others.
Korea’s gas consumption decreased by almost 1% in 2022, areversal from the robust growth of 10% in 2021. Healthy growth in
the industrial, district heating and city gas segments only partially
offset the decrease in gas use for power generation. Gas demandfor power generation decreased by more than 3% due to the highoutput from nuclear, renewable and coal-fired generation. This trend
PAGE | 20

IEA. CC BY 4.0.

importers. In 2023 emerging Asia’s gas consumption is projected toincrease by a modest 2%, fuelled by growing economic activity andpower demand.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Widespread declines in demand in Asia during 2022 are set to be followed by an unevenrecovery in 2023
Monthly gas demand, selected Asian countries, 2020-2023

Gas demand, selected Asian countries, 2020-2023

50%

15%
China

40%
30%

India

20%
10%
0%

Indonesia

Japan

2020
Y-o-y change

Y-o-y change

60%

2021
10%

2022
2023

5%

0%

-10%
-20%

Korea

-5%

-30%
-40%

Thailand-10%

IEA. CC BY 4.0.

PAGE | 21

IEA. CC BY 4.0.

Sources: IEA analysis based on ICIS (2023), ICIS LNG Edge; CQPGX (2023), Nanbin Observation; JODI (2023), Gas World Database; PPAC (2023), Gas Consumption; EPPO
(2023), Energy Statistics, Korea Energy Economics Institute (2023), Monthly Energy Statistics, Ministry of Economy, Trade and Industry of Japan (2023), METI Statistics.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

US natural gas output maintains its growth, driven by Permian oil-driven production
US dry gas production increased by an estimated 4% y-o-yduring October 2022 to March 2023, reaching an average dailylevel of 100 bcf in the first quarter of 2023 (or a 5.7% y-o-y

By comparison, natural gas output from gas-driven shale plays was
close to stable with a meagre 1.1% y-o-y increase during October toJanuary. The Appalachian Basin, the leading source of natural gas,increase).

accounting for about 31% of total US production, experienced a
2.5% y-o-y decline during this period. According to quarterly
statistics from the Pennsylvania Independent Fiscal Office, gas
production in the Pennsylvanian part of the Appalachian Basin

This increase was primarily led by associated production fromoil-driven shale plays, which increased by close to 8% y-o-yduring October to January. Output from the Permian Basin, thelargest oil-driven shale play, grew by close to 11% y-o-y over thesame period. This has been supported by strong drilling activity,with an average of close to 430 new wells drilled per month in the
Permian during October to January, or a 33% y-o-y increase,
whereas completion rates increased by only 4% y-o-y over thesame period, to a monthly average of 435 wells. January 2023

dropped by 5% y-o-y in the fourth quarter of 2022, while the number
of wells drilled declined by close to 12% over the same period.
Other gas-driven shale basins provided more support, with a close
to 8% y-o-y increase in the period October to January, driven by the
Haynesville play, which recorded strong 14% growth y-o-y over thesame period. Drilling activity in the Haynesville increased by 45% yo-y, with an average of 75 new wells drilled per month, while themarked the highest level of drilling activity in the Permian since
March 2020, with 437 new wells drilled. Additional associated shalegas growth principally came from the Eagle Ford play, which
experienced a 10% increase in output in the October to January
period. The Mississippian and Woodford plays have shown similar
growth rates, albeit with lower production volumes, while the
Bakken and Niobrara had limited growth, and the Fayetteville playexperienced a 20% slide.

completion rate grew by 67% to an average of 64 wells completed.
Total US natural gas production increased by 3.7% in 2022, but thisis expected to slow in 2023 due to a combination of continued
conservative upstream spending, cost inflation, limited export
outlets and an expected decline in domestic demand. This forecast
expects US dry gas output to increase by about 2% in 2023,
principally supported by associated gas production, while pure gas

PAGE | 22

IEA. CC BY 4.0.

shale plays are expected to see only limited growth.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

US natural gas production remained close to the record 100 bcf/d mark during Q1 2023
Gas production by type, United States, 2018-2023

bcm

100

80

95

60

40

20

90
100
90
80
70
60
50
40
30
20
10
0

J MS J MS J MS J M

120.0
100.0
80.0
60.0
40.0
20.0
0.0

J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMA
2018
2019
2020
2021
2022
2023

Appalachian Basin
Other dry shale
Permian Basin
Other associated shale
Other production

85

Total US gas
Pipeline imports (net)802018 2019 2020 2021
0

Total US gas (bcf/d)100

Total US gas (bcf/d)

75

IEA. CC BY 4.0.

PAGE | 23

IEA. CC BY 4.0.

Sources: IEA analysis based on EIA (2023), Natural Gas Data; Natural Gas Weekly Update.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

US natural gas production keeps growing in 2023, but at a slower pacebcm

Dry gas production by main source, United States, 2020-2023
200

400

500

400

300

300
100

200
200
100

100

0

2020

Dry shale

2021

2022

Associated shale

2023

Other production

0

2020

2021

2022

Appalachian Basin

2023

Other dry shale

0

2020

2021

Permian Basin

2022

2023

Other associated shale

IEA. CC BY 4.0.

PAGE | 24

IEA. CC BY 4.0.

Sources: IEA analysis based on EIA (2023), Natural Gas Data, Natural Gas Weekly Update.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

LNG became a baseload supply for Europe…
While the share of OECD Europe’s gas demand met by Russian
piped gas fell to well below 10% in the 2022/23 heating season,
LNG effectively became a baseload supply for Europe, meeting

continued phase-out of the Groningen field. Pipeline gas deliveries
from North Africa declined by 8% (or 1.4 bcm) y-o-y, with flows to
Iberia falling by 25% (or 1.3 bcm) and remaining broadly flat to Italy.
Gas supplies from Azerbaijan via the Trans Adriatic Pipeline rose by

over one-third of the region’s gas demand over the winter.

15% (or 0.8 bcm) compared to the previous heating season.

Russian piped gas exports to OECD Europe fell by an estimated
70% (or 50 bcm) y-o-y during the 2022/23 heating season. Whiledeliveries to Türkiye declined by close to 30% y-o-y, gas flows to
the European Union plummeted by over 80%, translating into a dropof 47 bcm compared to the previous heating season. In contrast,
the Russian Federation’s (hereafter “Russia”) LNG exports to theEuropean Union rose by 5% (or 0.5 bcm) compared to the 2021/22
winter period. Altogether, the share of the European Union’s totalgas demand met by Russian gas is estimated to have dropped to

Norway’s piped gas supplies to the rest of Europe declined by 4%(or 2.5 bcm) y-o-y during the 2022/23 heating season amid a higher
level of planned maintenance and unplanned outages. Norwegianpipeline deliveries to the European Union rose by 2% (or 0.8 bcm),
while exports to the United Kingdom fell by around 18% (or 3 bcm).
Non-Norwegian domestic production fell by an estimated 5% (or1.8 bcm) y-o-y during October 2022-February 2023. This waslargely driven by lower gas output in the Netherlands, reflecting the

supported by higher supplies to Belgium, France, Italy and Poland.
The profile of Russian piped gas supplies remains a major
uncertainty for the remainder of 2023. Assuming that flows to theEuropean Union continue at their Q1 levels, Russian piped gas
deliveries to OECD Europe would drop by 45% (or over 35 bcm) in
2023 compared with 2022. LNG imports are expected to remainbroadly flat compared to last year. Following a strong increase in
Q1 2023, OECD Europe’s LNG inflows are expected to decline
through the remainder of the year amidst lower injection needs anda continued decline in European gas consumption.

PAGE | 25

IEA. CC BY 4.0.

just 10%, while the share met by Russian piped gas is now well
below 10%.

LNG imports rose by over 25% (or 20 bcm) y-o-y to reach a record
94 bcm during the 2022/23 heating season. LNG flows from theUnited States increased by 30% (or almost 10 bcm) y-o-y toaccount for over 45% of incremental LNG supply into Europe. Thisfurther reinforced the position of the United States as Europe’s
largest supplier, accounting for over 40% of the region’s total LNG
imports and meeting almost 15% of its gas demand. Qatar
increased its gas deliveries by 15% (or 1.5 bcm), primarily

Gas market update and short-term forecast

Gas Market Report, Q2-2023…accounting for two-thirds of imports during the 2022/23 heating season
OECD Europe’s natural gas imports by pipeline and LNG
2021/22 heating season

Russia - pipeline flows

2022/23 heating season

North Africa - pipeline flows

Others - pipeline flows

LNG
IEA. CC BY 4.0.

PAGE | 26

IEA. CC BY 4.0.

Sources: IEA analysis based on ENTSOG (2023), Transparency Platform; Eurostat (2023), Energy Statistics; Gas Transmission System Operator of Ukraine (2023), Transparency
Platform; ICIS LNG Edge; JODI (2023), Gas World Database.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Global LNG demand moderated in Q1 while remaining strong in Europe
In Q1 2023 global LNG imports (net of re-exports) expanded by an
estimated 2% y-o-y.

USD 30/MBtu in the first quarter of 2022 and having reached
USD 70/MBtu at the peak in August 2022. In March 2023 spot LNG
prices in Northeast Asia averaged at USD 13/MBtu, encouraging
South Asian buyers to return to spot markets via tenders.

LNG imports into the Asia Pacific region increased slightly
compared with Q1 2022, up by 0.5% (or 0.4 bcm). The greatest y-oy declines during the first quarter in volume terms occurred in Japan(down by 2 bcm or 7% y-o-y), India (down by 0.6 bcm or 9% y-o-y),and China (down by 0.3 bcm or 1.4% y-o-y). In contrast, LNG
imports increased in South Korea (up by 1.5 bcm or 8% y-o-y),Thailand (up by 0.5 bcm or 18% y-o-y), Singapore (up by 0.4 bcm
or 40% y-o-y) and Chinese Taipei (up by 0.3 bcm or 5% y-o-y). LNG
imports into Pakistan and Bangladesh remained stable comparedwith Q1 2022.

Meanwhile, Europe’s net LNG imports rose by 8% (or 3.5 bcm) y-oy in Q1 2023 as the continent continued to offset declining Russian
pipeline gas supplies, mainly by increasing LNG imports and taking
advantage of low gas price levels not seen since August 2021.
However, LNG inflows into France dropped by 23% y-o-y in Q1 (or2 bcm) and by 55% y-o-y in March alone, due to a strike at French
LNG terminals. Strikes at Dunkerque LNG brought send-out fromthe terminal to a minimum, closed the jetty for vessel operations
and prevented truck loading for 11 days in March. Disruption due tostrikes at Fos Cavaou, Fos Tonkin and Montoir-de-Bretagne LNG
import terminals started on 7 March and these strikes wereextended until 14 April at the time of writing. France accounts foraround 12% (or 26 Mt/yr) of Europe’s total regasification capacity. It

After months of year-on-year declines in China’s LNG imports (netof re-exports), volumes rebounded in February, up by 2% on thesame month in 2022 according to ICIS LNG Edge. This was the firsttime that monthly Chinese LNG imports recorded a year-on-yearincrease since December 2021. This rebound seemed to be
confirmed in March as net LNG imports increased by 11% y-o-y.
Although they remained well above historical averages, Asian LNG
spot prices fell significantly in Q1 2023 from the record levels
reached in the summer of 2022. In the first quarter of 2023 theaverage JKM spot price was around USD 18/MBtu, compared with
PAGE | 27

IEA. CC BY 4.0.

became the largest importer of LNG in Europe in 2022, with its LNG
imports more than doubling on the previous year. The work
stoppages at French LNG terminals have caused vessels to divert
to other European ports, mainly to the United Kingdom and Spain,
but also to the Netherlands, Türkiye and Greece. Based on ICIS
data and analysis, we estimate the total loss of LNG deliveries toFrance to be between 1 bcm and 1.5 bcm for the month of March

Gas market update and short-term forecast

Gas Market Report, Q2-2023

2023. As a result, France has been forced to lean on its storage
inventories. Data from Gas Infrastructure Europe show that French
underground storage facilities were 28% full at the end of March,
the lowest fill level among European countries, where the average

to production of the Hammerfest LNG plant, which was offline
between September 2020 and June 2022 following a fire. LNG
exports from Russia were down by 9% (or 1 bcm) this quartercompared to the same period in 2022. Sakhalin-II LNG’s project
operator announced in February 2023 that the plant will move awayfrom the "peak-load" strategy it has been pursuing in the last few
years. Novatek expects YAMAL LNG production to drop by 5%
year-on-year in 2023, the company’s top management said at thewas 56%.
In Q1 2023 Central and South America experienced a sharp
decline in LNG demand (down 28% y-o-y or 1 bcm), mainly due tothe improved situation for hydropower generation in Brazil – which
did not receive a single LNG cargo during Q1 – and the increasing
share of renewables in the power mix in the Dominican Republic.

beginning of February 2023.
In 2023 the volume of global LNG trade is set to increase by 4%.
LNG supply growth will be primarily supported by the return of theFreeport LNG terminal in the United States, improving feedgas
availability in Trinidad & Tobago, and the ramp-up of production at
Mozambique’s Coral South FLNG. Demand growth will be largely

Global LNG supply was up by 2% y-o-y in Q1 2023 measured on
an import basis. This was driven by the Asia Pacific region and the
Middle East, which saw a year-on-year increase of 5.5% (or 2.6bcm) and 2% (or 0.7 bcm) in their LNG outputs respectively. Qatar
and Indonesia, followed by Australia and Malaysia, were the main
contributors to this expansion. In contrast to the first quarter of2022, the United States experienced a moderate 4% (or 1 bcm)
decline in LNG exports, explained by the delayed and only partial
restart of the Freeport LNG facility following an eight-month outage
caused by a fire. LNG exports from Norway recovered from last
year's first quarter with an increase of 1.5 bcm, reflecting the return

PAGE | 28

IEA. CC BY 4.0.

driven by Asia. China’s LNG imports are expected to increase at a
rate of 10-15% compared with 2022, while remaining below their2021 levels. After strong growth in Q1 2023, OECD Europe’s LNG
imports are expected to decline for the remainder of the year amidst
lower injection needs and a continued decline in European gas
consumption.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

The United States is set to drive LNG supply growth in 2023
LNG imports and exports by region, 2015-2023

bcm

800
600

ActualIMPORTS

Forecast
Africa400

Asia Pacific200

Central and South America

0Eurasia-200

EuropeMiddle East

-400
-600
-800

North America
EXPORTS
2015

2016

2017

2018

2019

2020

2021

2022

2023
IEA. CC BY 4.0.

PAGE | 29

IEA. CC BY 4.0.

Source: IEA analysis based on ICIS (2023), ICIS LNG Edge.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Not feeling the heat: Gas prices moderated significantly during the 2022/23 winterUnseasonably mild weather, lower gas demand and improving
supply fundamentals weighed on spot gas prices across all key gas
markets during the 2022/23 winter. By the end of Q1 2023, Asian

Asian spot LNG followed a similar trajectory to European hub
prices, averaging USD 23/MBtu during the 2022/23 heating season– around 30% below the levels experienced in the previous winter.

spot LNG and European hub prices had fallen below their summer

Less competition from Europe together with easing regional supplydemand fundamentals provided downward pressure on prices. Spot
LNG prices declined by 65% from mid-December 2022, falling toalmost USD 12/MBtu at the end of March 2023 – a level close to the2021 levels, albeit remaining well above their historic averages.
In Europe, Title Transfer Facility (TTF) spot prices averaged
USD 23/MBtu during the 2022/23 heating season – almost 30%
below the levels experienced in the previous winter. Gas prices on
the TTF declined by almost 70% between mid-December 2022 andthe end of March 2023. Unseasonably mild weather conditions,lower-than-expected gas use, strong LNG supply and gas inventory
levels standing well above their historic averages provided strong
downward pressure on European gas prices. TTF spot prices

estimated price range of oil-indexed Asian LNG.
In the United States, Henry Hub prices averaged USD 4/MBtu in the2022/23 heating season, almost 15% below the levels experienced
during the previous winter. Strong growth in domestic production
combined with lower gas demand amid an unseasonably mild
winter put downward pressure on gas prices. Henry Hub prices

averaged USD 17/MBtu in Q1 2023, a decline of 48% on the same
period the year before, although remaining more than three times
the historic average of the 2016-2020 period. The TTF retained apremium of USD 2.6/MBtu above the NBP hub in the United
Kingdom. This incentivised continued gas exports from the United
Kingdom to the European Union over the heating season, totallingat over 7 bcm. By the end of March 2023, TTF month-ahead prices
had fallen to USD 13/MBtu, their lowest level since July 2021.

averaged USD 2.6/MBtu in Q1 2023, their lowest Q1 level since
2020.
Forward curves as of the end of April 2023 indicate that TTF is set
to average USD 15/MBtu in 2023, with Asian spot LNG averaging
just below USD 15/MBtu and Henry Hub averaging USD 2.6/MBtu.
The price spread between TTF and Asian spot LNG is expected to

PAGE | 30

IEA. CC BY 4.0.

tighten significantly in 2023.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Asian spot LNG and TTF prices are expected to remain above their historic averages in 2023

USD/MBtu

Main spot and forward natural gas prices, 2020-2023
60

40

20

2020

2021
TTF

2022
Henry Hub

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

0
2023

Asian spot LNG

IEA. CC BY 4.0.

PAGE | 31

IEA. CC BY 4.0.

Sources: IEA analysis based on CME (2023), Henry Hub Natural Gas Futures Quotes, Dutch TTF Natural Gas Month Futures Settlements; CME Group (2023), LNG Japan/Korea
Marker (Platts) Futures Settlements; EIA (2023), Henry Hub Natural Gas Spot Price; ICIS (2023), ICIS LNG Edge; Powernext (2023), Spot Market Data.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Mild winter and low gas demand depressed storage withdrawals over the 2022/23 winter season
The steep decline in natural gas demand depressed storage
withdrawals in Europe and the United States over the 2022/23
winter season. Storage sites closed the heating season with

European Union’s 90% fill level target by the start of the 2023/24
heating season. Lower injection demand over summer 2023 could
potentially contribute to an easing of market fundamentals. In

inventory levels standing well above their five-year average. This is
expected to reduce injection demand during the summer of 2023,
easing market fundamentals.

Ukraine gas inventory levels at the end of March 2023 were
estimated at 9 bcm (around 29% of working storage capacity).
Ukraine has a target to build up gas storage of 15 bcm by the start

met around 15% of EU gas demand over the 2022/23 heating
season, compared with 20% during the previous winter. Theseaverage values hide the critical role of gas storage in ensuring gas
supply adequacy during peak days: storage met over 40% of EUgas demand during the coldest winter days in early December 2022
and late January 2023. As a consequence of the below average net
withdrawals, EU storage sites closed the 2022/23 heating season
55% full and with inventory levels standing 67% (or 22 bcm) above
their five-year average. Hence, storage injections equal to half oflast year’s (around 35 bcm) would suffice to reach theof the 2023/24 heating season.
In the United States storage sites were 80% full at the beginning ofNovember, well aligned with their five-year average. Unseasonably
mild weather conditions combined with a strong increase indomestic production reduced storage withdrawals. Net storage
withdrawals stood almost 30% (or 15 bcm) below their five-year
average during October 2022-March 2023, and met approximately
7% of US gas demand during this period. As a consequence of
below average draw on storage, US storage sites closed the2022/23 heating season 43% full, standing 20% (or 12 bcm) above
their five-year average.
In Japan and Korea closing LNG stocks stood 47% (or 4 bcm)
above their five-year average in January 2023. The LNG stocks ofJapan’s largest power generation companies stood at 2.6 Mt(3.6 bcm) at end of March 2023, 25% above their five-year average.

PAGE | 32

IEA. CC BY 4.0.

In the European Union gas inventory levels had reached 95% of
their working storage capacity by mid-November, standing 9% (or8 bcm) above their five-year average. The steep drop in natural gas
demand combined with continued strong LNG inflow reduced thecall for storage withdrawals. Net storage withdrawals stood 38% (or20 bcm) below their five-year average during the 2022/23 heating
season and totalled 32 bcm. Altogether, net storage withdrawals

Gas market update and short-term forecast

Gas Market Report, Q2-2023

Storage levels closed the 2022/23 heating season well above their five-year average
United States undergroundstorage inventory

European Union undergroundstorage inventory

Japan and Korea LNG stock
inventory

IEA. CC BY 4.0.

PAGE | 33

IEA. CC BY 4.0.

Sources: IEA analysis based on EIA (2023), Weekly Working Gas In Underground Storage; GIE (2023), AGSI+ Database; IEA (2023), Monthly Gas Data Service.

Gas market update and short-term forecast

Gas Market Report, Q2-2023

In the European Union storage injections equal to half of last year’s would suffice to reach 90%
fill levels by the start of the 2023/24 heating seasonbcm

Gas storage injections, European Union, 2013-2023
80

60

40

Injections toreach 95%
Injections
needed toreach 90%
fill levels in
2023

20

0

2013

2014

2015

2016

2017

2018

Storage injections

2019

2020

2021

2022

2023

Ten-year average

IEA. CC BY 4.0.

PAGE | 34

IEA. CC BY 4.0.

Source: IEA analysis based on GIE (2023), AGSI+ Database.

Spotlight on e-methaneGas Market Report, Q2-2023

PAGE | 35

IEA. CC BY 4.0.

Spotlight on e-methaneSpotlight on e-methaneGas Market Report, Q2-2023

E-methane: A gas fit for net zero?
Being interchangeable with natural gas, e-methane 2 could play asignificant role in decarbonising existing gas networks without
the need for retrofitting, while enhancing the seasonal and short-

term flexibility of future energy systems. E-methane’s highproduction costs require further technological development andpolicy support, including through closer dialogue between future

The overall e-methane production process presents
substantial efficiency losses. Approximately half of the primaryenergy supplied is lost during the two-step conversion process.

producers and consumers.

Moreover, its production and usage require the development of aseparate carbon value chain and emission accounting system (toensure its carbon neutrality). Similarly to natural gas, e-methane
can be liquefied, which would result in an additional 10% energy

E-methane is underpinned by a complex value chain…
E-methane is produced through a two-step process: lowemission electricity is converted via electrolysis into hydrogen,which is then reacted with a carbon source to obtain e-methane(methanation). Two main methanation technologies are available
for demonstration:

loss. Liquefied e-methane could enable the development of longdistance trade routes (similar to the global LNG trade) and support
the decarbonisation of maritime transport.

Catalytic methanation is enabled by catalysts operating at hightemperature (200-700°C) and under high pressure (1-100 bar).
Several demonstration projects rely on catalytic methanation, withthe process having achieved a Technology Readiness Level of 7. 3
The system efficiency of catalytic methanation is around 80%.

…resulting in high production costs
The complex value chain underpinning the production of e-methanemeans that both investment costs and operational expenses
are high. Current e-methane production costs are estimated to be

E-methane refers to synthetic methane produced from electrolytic hydrogen. The definition of
low-emission synthetic methane used by the IEA for analytical purposes in its reports considers
that any carbon inputs, e.g. from CO2, are not from fossil fuels or process emissions. Beyond thisdefinition, a commercial proposition for carbon-neutral e-methane could consider the use of CO2

captured at industrial or power plants and offset through carbon credits (similar to the commercial
offers of carbon-neutral LNG).
3
Of the 11 Technology Readiness Levels (TRLs), with 1 being the lowest, TRL 7 refers to precommercial demonstration of a prototype.

2

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IEA. CC BY 4.0.

Biological methanation is carried out at comparatively low
temperatures (30-70°C) and pressures. The conversion ofhydrogen and CO2 is enabled by microorganisms. This technology
is not commercially available yet and is expected to have a lower
efficiency compared with catalytic methanation, around 55-60%.

Spotlight on e-methaneGas Market Report, Q2-2023

in the range of USD 50-200/MBtu. Bringing down the cost of lowemission electricity and hydrogen production will be crucial toenhance the cost-competitiveness of e-methane.

bioenergy with carbon capture (BECC), e-methane production costs
could decline to a range of USD 25-110/MBtu by 2030 in the APS.

E-methane can play a key role in future market coupling

The levelised cost of renewables-based low-emission hydrogenis currently in the range of USD 3-9/kg H2 (USD 25-80/MBtu). Under
the Announced Pledges Scenario (APS), renewable electrolytichydrogen production costs could be in the range of USD 1.3-6/kg H2(USD 12-53 MBtu) by 2030 and USD 1-4/kg H2 (USD 8-34 MBtu) by
2050. The strong decline in the levelised cost of low-emissionhydrogen production relates to several factors, including
decreasing electrolysis and renewable technology costs. For
example, we estimated that the total cost of installing a European orAmerican manufactured electrolyser in 2021 was about
USD 1 500/kW, and that it could fall to below USD 400/kW by 2030

E-methane is almost identical to natural gas in its chemical andphysical properties. As such, it is suitable for use in existing gas
infrastructure including end-use appliances without requiring any
substantial repurposing, unlike the case of pure hydrogen. This
could lead to significant cost savings. E-methane could also use
existing or planned LNG liquefaction and regasification
infrastructure. In contrast, there are limited options to repurpose
existing or planned LNG infrastructure for hydrogen service, as it
would require substantial modification of most equipment –and to below 300/kW by 2050 in the Announced Pledges Scenario.
Considering the additional investment required in methanation
systems, the efficiency losses and the expenses related to CO2
sourcing, e-methane production costs are substantially higher
compared with low-emission hydrogen. Depending on the
carbon source, the production cost of synthetic methane can be 70160% higher than the cost of the hydrogen used as input. The
CAPEX for catalytic methanation systems is estimated at around
USD 1000/kW. The CAPEX of methanation systems could decline
to below USD 850/kW by 2030 and to around USD 500/kW by2050. Together with the cost reductions projected for DAC and

PAGE | 37

IEA. CC BY 4.0.

including storage tanks, which represent the majority of theinvestment cost of LNG import terminals. A newly constructed liquidhydrogen storage tank can be 50% more expensive than an LNG
tank with a comparable volume, and the energy stored would bealmost 60% lower given the lower volumetric density. Moreover, thetypical foam insulation used for LNG pipelines are unsuitable forliquid hydrogen, which instead require vacuum insulation, hiking
pipeline costs by five to ten times per unit of length. Liquefied emethane could be transported via the existing LNG carrier fleet(around 600 ships with a collective value of USD 80 billion), an
option not available in the case of low-emission hydrogen.

Spotlight on e-methaneGas Market Report, Q2-2023

E-methane also has a wider range of storage options comparedwith hydrogen. Besides salt caverns, it could also be stored inporous formations in gaseous form (an option still being
investigated for pure hydrogen) and in LNG storage tanks (anoption that is unlikely to be available for pure hydrogen). Hence, emethane could play a key role in meeting seasonal or short-term
energy demand swings. In addition, synthetic methane would
enable the coupling of methane and hydrogen networks,
i.e. surplus hydrogen could be converted into synthetic methane
before being injected into the methane system.
Considering the higher energy density of e-methane in gaseous
form, it could have an operational advantage over hydrogen inseveral areas where natural gas is already widely adopted,
including district heating, high-temperature industrial process and

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IEA. CC BY 4.0.

fertiliser production.

Spotlight on e-methaneGas Market Report, Q2-2023

E-methane is characterised by a complex value chain with substantial efficiency losses
Simplified scheme showing e-methane production

PAGE | 39

IEA. CC BY 4.0.

IEA. CC BY 4.0.

Spotlight on e-methaneGas Market Report, Q2-2023

E-methane’s high production costs require further technological development and policy
supportEstimated level cost of synthetic methane production, 2021 vs. 2030
200

100

50

0

Solar PV
electrolysis

Onshore windelectrolysis

Offshore windelectrolysis

2021

Solar PV
electrolysis

Onshore windelectrolysis

Offshore windelectrolysis

2030

IEA. CC BY 4.0.

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IEA. CC BY 4.0.

USD/MBtu

150

Gas Market Report, Q2-2023

Spotlight on e-methaneJapan: A first mover in the e-methane space
USD 14 million) to research and demonstrate the viability ofmethanation technologies as a means to reduce emissions while
continuing to use existing gas networks. Japan’s Green
Transformation (GX) programme is set to provide another major

Recognising the benefits of e-methane, Japan is considering
methanation as a key component of its strategy to decarbonise its
gas supply. The country’s 6th Strategic Energy Plan set a target
for synthetic methane to comprise 1% of the gas supply in existingfunding boost for technologies that produce low-emissionhydrogen, ammonia and e-methane.

networks by 2030, increasing to 90% by 2050. Japan aims to
reduce e-methane costs to JPY 120 per normal cubic metre (Nm3)(USD 25/MBtu) by 2030, and down further to JPY 50/Nm3(USD 10/MBtu) by 2050.

Several Japanese enterprises have embarked on e-methane
production projects. Tokyo Gas started a 12.5 m3/hr
demonstration project in Yokohama in March 2022. The company
has a target to produce 80 million m3/yr of e-methane by 2030.
Osaka Gas is developing a prototype with 0.1 m3/hr capacity, withplans to enter the demonstration phase in 2028-2030 at 400 m3/hr.
The company has a target to produce 60 million m3/yr of synthetic
methane by 2030.

The country’s Strategic Energy Plan aims to ramp up annual emethane supply to 0.28 Mt (or 0.38 bcm/yr) by 2030 and 25 Mt (or34 bcm/yr) by 2050. This amount excludes direct hydrogen,biogas and other direct uses of non-fossil fuels. The strategy
highlights the importance of a closer co-operation between thevarious stakeholders on the supply and the demand side in
decarbonising gas. To foster the development of e-methane, a

INPEX and Osaka Gas are developing Japan’s largest
methanation project in Nagoya. The project is expected to belaunched by the second half of FY 2024/25, with production
expected to ramp up to 400 m3/hr by FY 2025/26. There are plans
to increase output to 10 000 m3/hr in the pilot phase and
60 000 m3/hr if the project reaches the commercial phase.

Public-Private Council for the Promotion of Methanation wasestablished in June 2021.
Japan funds e-methane projects through the New Energy andIndustrial Technology Development Organization (NEDO). NEDO
provides R&D funding and financial support for demonstration
projects under their Green Innovation (GI) Fund. In 2017 NEDO
launched a five-year programme worth JPY 1.9 billion (around

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IEA. CC BY 4.0.

Most recently, JFE Steel Corporation awarded IHI Corporationan order for the world’s largest methanation system in December

Gas Market Report, Q2-2023

Spotlight on e-methane

2022, after being selected by the GI Fund. The plant will be able
to produce 500 m3/hr of e-methane by using 24 tonnes of CO2 per
day from exhaust gas derived from a test blast furnace. Operations
are scheduled to begin in 2024.

front end engineering and design work for a demonstration-scale
project to produce e-methane from low-emission hydrogen inAustralia. The two companies aim to reach a final investment
decision in 2026 and export about 60 000 tonnes of e-methane
annually by 2030.

In addition to domestic demonstration projects, Japanese utilities

A non-exhaustive list of key international e-methane projects
supported by Japanese companies is provided at the end of thissection.

and trading houses have started jointly exploring the feasibility ofdeveloping e-methane supply chains with LNG exporting
countries. While no binding agreements have been reachedyet, these recent project proposals could potentially enable
0.4 Mt/yr (or 0.55 bcm/yr) of e-methane imports into Japan by
2030. This would equate to around 0.6% of Japan’s natural gas
consumption in 2022.
Projects include the agreement between Tokyo Gas, Osaka Gas,
Toho Gas and Mitsubishi Corporation to conduct a feasibility
study of the production of e-methane at the Cameron LNG
terminal in the United States. The companies’ intention is to export
130 000 t/yr of synthetic methane by 2030. Similarly, Osaka Gas,
Tallgrass Energy and Green Plains agreed in December 2022
to conduct a joint feasibility study on synthetic methane
production. The firms aim to produce up to 200 000 t/yr of

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IEA. CC BY 4.0.

synthetic methane by 2030 and export it to Japan from theFreeport LNG export terminal in the United States. Most recently,
Osaka Gas Australia and Santos agreed in March 2023 on pre-Spotlight on e-methaneGas Market Report, Q2-2023

Japan has set a target for e-methane to meet 90% of its city gas supply by 2050
City gas consumption of gaseous fuels,
2030

City gas consumption of gaseous fuels,
2050

E-methane

E-methane

Other carbonneutral
gases
Natural gas

Directhydrogen use
Biomethaneand othermeasures

IEA. CC BY 4.0.

PAGE | 43

IEA. CC BY 4.0.

Source: IEA analysis based on Japan’s 6th Strategic Energy Plan.

Spotlight on e-methaneGas Market Report, Q2-2023

Japan is actively developing international value chains for e-methane
Companies
involved

Potential
importcountry

Year ofagreement

Potential
importvolumes

Description of the project

Tokyo Gas, Sumitomo
Corporation
and Petronas

Malaysia

2021

N/A

A joint feasibility study on potential e-methane production in Malaysia. The renewablehydrogen-derived methane produced in Malaysia would be liquefied and transported toJapan in LNG carriers using existing facilities.

INPEX and Osaka Gas

N/A

2021

N/A

Study on the commercial feasibility of importing e-methane into Japan and evaluationof policies on the domestic environmental value of importing e-methane produced
abroad.

JERA

UnitedStates2021

N/K

JERA secured a grant of around USD 0.45 million from NEDO to conduct a feasibility
study on producing a CO2-free LNG from e-methane in the United States.

Osaka Gas Australia
and ATCO Australia

Australia

2021

N/A

A memorandum of understanding to undertake a joint feasibility study of amethanation pilot plant for the production of e-methane.

Toyota Tsusho, Toho Gas andTotalEnergies

N/A

2022

N/A

An agreement to commence a business feasibility study of establishing hydrogen ande-methane supply chains into Japan.

Marubeni and Osaka Gas

Peru

2022

N/K

A project to study the production of e-methane in Peru and its delivery to Japan.

Tokyo Gas, Osaka Gas
and Shell

N/A

2022

N/A

Tokyo Gas, Osaka Gas, Toho Gas
and Mitsubishi Corporation

UnitedStates2022

0.13 Mt/yr
by 2030

Osaka Gas, Tallgrass Energy
and Green Plains

UnitedStates2022

0.2 Mt/yr
by 2030

IHI Corporation
and Pertamina

Indonesia

2022

N/K

Osaka Gas Australia and Santos

Australia

2023

0.06 Mt/yr
by 2030

Separate memorandums of understanding to explore potential opportunities toaccelerate decarbonisation across their respective production value chains, including
via renewables-based synthetic gas.
An agreement to conduct a feasibility study of the production of e-methane at the
Cameron LNG terminal in the United States. E-methane supply could reach 0.13 Mt/yr
by 2030.
Agreement to conduct a feasibility study on synthetic methane production at theFreeport LNG export terminal in the United States.
Memorandum of understanding to undertake a feasibility study on e-methane
production in Indonesia. Aiming to start commercial operations by 2030.
Pre-front end engineering and design work on a demonstration-scale project toproduce e-methane from low-emission hydrogen in Australia. The two companies aim
to make a final investment decision in 2026.
IEA. CC BY 4.0.

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IEA. CC BY 4.0.

Notes: N/A = not applicable; N/K = not known.

AnnexGas Market Report, Q2-2023

PAGE | 45

IEA. CC BY 4.0.

Annex

AnnexGas Market Report, Q2-2023

Summary table
World natural gas consumption and production by region and key country (bcm)
Production

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

Africa

164

161

169

164

168

252

241

262

251

262

Asia Pacific

829

834

891

877

905

630

626

651

659

666

307

325

367

364

388

174

189

205

218

228

Central and South America

156

142

153

151

149

167

150

148

152

154

Eurasia

608

584

634

610

610

921

866

961

873

820

482

460

501

475

476

738

692

762

672

620

Europe

590

576

609

524

498

249

230

222

230

226

Middle East

543

547

562

575

588

668

669

693

712

727

North America

1 104

1 079

1 091

1 145

1 122

1 164

1 145

1 183

1 230

1 250

886

868

874

921

899

968

954

984

1020

1040

3 993

3 924

4 109

4 046

4 041

4 051

3 927

4 120

4 108

4 105

of which Chinaof which Russia

of which United States

World

PAGE | 46

IEA. CC BY 4.0.

Consumption

AnnexGas Market Report, Q2-2023

Regional and country groupings
Africa – Algeria, Angola, Benin, Botswana, Cameroon, Congo, Democratic
Republic of the Congo, Côte d’Ivoire, Egypt, Eritrea, Ethiopia,
Gabon, Ghana, Kenya, Libya, Morocco, Mozambique, Namibia,
Nigeria, Senegal, South Africa, Sudan, United Republic of
Tanzania, Togo, Tunisia, Zambia, Zimbabwe and other countries
and territories.1

Middle East – Bahrain, the Islamic Republic of Iran, Iraq, Israel,8 Jordan,
Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, the Syrian Arab
Republic, the United Arab Emirates and Yemen.
North Africa – Algeria, Egypt, Libya, Morocco and Tunisia.
North America – Canada, Mexico and the United States.
1 Individual data are not available and are estimated in aggregate for: Burkina Faso, Burundi, Cape
Verde, the Central African Republic, Chad, Comoros, Djibouti, Equatorial Guinea, Gambia, Guinea,
Guinea-Bissau, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Niger, Reunion,
Rwanda, Sao Tome and Principe, Seychelles, Sierra Leone, Somalia, Swaziland and Uganda.
2 Including Hong Kong.
3 Individual data are not available and are estimated in aggregate for: Afghanistan, Bhutan, Cook
Islands, Fiji, French Polynesia, Kiribati, the Lao People’s Democratic Republic, Macau (China),
Maldives, New Caledonia, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste,
Tonga and Vanuatu.
4 Individual data are not available and are estimated in aggregate for: Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Dominica, Falkland
Islands (Malvinas), French Guyana, Grenada, Guadeloupe, Guyana, Martinique, Montserrat, St
Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Suriname and Turks and Caicos Islands.
5 Note by the Republic of Türkiye.
The information in this document with reference to “Cyprus” relates to the southern part of theIsland. There is no single authority representing both Turkish and Greek Cypriot people on the
Island. The Republic of Türkiye recognises the Turkish Republic of Northern Cyprus (TRNC). Until
a lasting and equitable solution is found within the context of the United Nations, The Republic ofTürkiye shall preserve its position concerning the “Cyprus issue”.
6.Note by all the European Union Member States of the OECD and the European Union
The Republic of Cyprus is recognised by all members of the United Nations with the exception of
Türkiye. The information in this document relates to the area under the effective control of theGovernment of the Republic of Cyprus.
7 The designation is without prejudice to positions on status, and is in line with the United Nations
Security Council Resolution 1244/99 and the Advisory Opinion of the International Court of Justiceon Kosovo’s declaration of Independence.
8 The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli

Asia Pacific – Australia, Bangladesh, Brunei Darussalam, Cambodia,
Chinese Taipei, India, Indonesia, Japan, Korea, the Democratic
People’s Republic of Korea, Malaysia, Mongolia, Myanmar,
Nepal, New Zealand, Pakistan, the People’s Republic of China,2
the Philippines, Singapore, Sri Lanka, Thailand, Viet Nam andother countries and territories.3
Central and South America – Argentina, Bolivia, Brazil, Chile, Colombia,
Costa Rica, Cuba, the Dominican Republic, Ecuador, El
Salvador, Guatemala, Haiti, Honduras, Jamaica, Netherlands
Antilles, Nicaragua, Panama, Paraguay, Peru, Trinidad andTobago, Uruguay, Venezuela and other countries and territories.4
Eurasia – Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, theRussian Federation, Tajikistan, Turkmenistan and Uzbekistan.
Europe – Albania, Austria, Belarus, Belgium, Bosnia and Herzegovina,
Bulgaria, Croatia, Cyprus,5,6 the Czech Republic, Denmark,Estonia, Finland, the Former Yugoslav Republic of North
Macedonia, France, Germany, Gibraltar, Greece, Hungary,
Iceland, Ireland, Italy, Kosovo,7 Latvia, Lithuania, Luxembourg,
Malta, the Republic of Moldova, Montenegro, the Netherlands,
Norway, Poland, Portugal, Romania, Serbia, the Slovak
Republic, Slovenia, Spain, Sweden, Switzerland, Republic ofTürkiye, Ukraine and the United Kingdom.

PAGE | 47

IEA. CC BY 4.0.

authorities. The use of such data by the OECD and/or the IEA is without prejudice to the status of
the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms ofinternational law.

European Union – Austria, Belgium, Bulgaria, Croatia, Cyprus,5,6 the Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, theNetherlands, Poland, Portugal, Romania, the Slovak Republic,
Slovenia, Spain and Sweden.

AnnexGas Market Report, Q2-2023

Abbreviations and acronyms
ANP

National Petroleum Agency (Brazil)

MME

Ministry of Mines and Energy (Brazil)

BMC

Colombian Mercantile Exchange (Colombia)

NBP

National Balancing Point (United Kingdom)

CME

Chicago Mercantile Exchange (United States)

NDRC

CNE

National Energy Commission (Chile)

National Development and Reform Commission (the People’s
Republic of China)

CQPGX

Chongqing Petroleum Exchange (the People’s Republic ofChina)OECD

Organisation for Economic Co-operation and Development

ONS

National Electric System Operator (Brazil)

Energy Information Administration (United States)

OSINERG

Energy Regulatory Commission (Peru)

ENARGAS National Gas Regulatory Entity (Argentina)

PPAC

Petroleum Planning and Analysis Cell (India)

ENTSOG

European Network of Transmission System Operators for Gas

TTF

Title Transfer Facility (the Netherlands)

EPIAS

Energy Markets Operations Inc. (Republic of Türkiye)

USD

United States dollar

EPPO

Energy Policy and Planning Office (Thailand)

y-o-y

year-on-year

EU

European Union

EUR

Euro

FID

final investment decision

GIE

Gas Infrastructure Europe

GX

Green Transformation programme (Japan)

HH

Henry Hub

IEA

International Energy Agency

ICE

Intercontinental Exchange

ICIS

Independent Chemical Information Services

IEA

International Energy Agency

JKM

Japan Korea Marker

JODI

Joint Oil Data Initiative

JPY

Japanese yen

LNG

liquefied natural gas

METI

Ministry of Economy, Trade and Industry (Japan)

Units of measure
bcf
bcf/d
bcm
bcm/yr
GJ
GW
kWh
MBtu
Mt
Mt/yr
m3/hr
m3/yr
Nm3
TWh
t/yr
PAGE | 48

billion cubic feetbillion cubic feet per day
billion cubic metres
billion cubic metres per year
gigajoulegigawatt
kilowatt hour
million British thermal units
million tonnes
million tonnes per year
cubic metres per hour
cubic metres per year
normal cubic metre
terawatt hour
tonnes per year
IEA. CC BY 4.0.

EIA

AnnexGas Market Report, Q2-2023

Acknowledgements, contributors and credits
This publication has been prepared by the Gas, Coal and Power
Markets Division (GCP) of the International Energy Agency (IEA).
The analysis was led and co-ordinated by Jean-Baptiste Dubreuil

The individuals and organisations that contributed to this report are
not responsible for any opinion or judgement it contains. Any error
or omission is the sole responsibility of the IEA.

and Gergely Molnár. Louis Chambeau, Jean-Baptiste Dubreuil,
Carole Etienne and Gergely Molnár are the main authors, with
contributions from Tetsuro Hattori, Akos Lósz and Hiro Sakaguchi.
Megumi Kotani (HAF) co-authored the section on e-methane. JoseFor questions and comments, please contact GCP (gcp@iea.org)
or Gergely Molnár (Gergely.Molnar@iea.org).

Miguel Bermudez Menendez (HAF) and Francesco Pavan (HAF)
provided guidance on e-methane. Eren Cam, Carlos Fernandez
Alvarez and Javier Jorquera provided support.
Keisuke Sadamori, Director of the IEA Energy Markets and Security(EMS) Directorate, provided expert guidance and advice.
Timely and comprehensive data from the Energy Data Centre were
fundamental to the report.
The IEA Communication and Digital Office (CDO) provided
production and launch support. Particular thanks go to Jad
Mouawad and his team: Poeli Bojorquez, Astrid Dumond, Oliver
Joy, Jethro Mullen, Isabelle Nonain-Semelin, Charner Ramsey,
Clara Vallois and Therese Walsh.
Justin French-Brooks edited the report.

PAGE | 49

IEA. CC BY 4.0.

The report was made possible by assistance from Tokyo Gas.

International Energy Agency (IEA)
This work reflects the views of the IEA Secretariat but does notnecessarily reflect those of the IEA’s individual member countries orof any particular funder or collaborator. The work does notconstitute professional advice on any specific issue or situation. The
IEA makes no representation or warranty, express or implied, inrespect of the work’s contents (including its completeness or
accuracy) and shall not be responsible for any use of, or relianceon, the work.

Subject to the IEA’s Notice for CC-licenced Content, this work islicenced under a Creative Commons Attribution 4.0 International
Licence.
This document and any map included herein are without prejudice
to the status of or sovereignty over any territory, to the delimitationof international frontiers and boundaries and to the name of any
territory, city or area.
Unless otherwise indicated, all material presented in figures andtables is derived from IEA data and analysis.
IEA Publications
International Energy Agency
Website: www.iea.org
Contact information: www.iea.org/about/contact

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Cover design: IEA
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Annex