The International Gas Union’s Global Gas Report 2025 highlights a defining reality: natural gas remains essential to global energy security while facing mounting uncertainty over supply and investment. According to the report, global natural gas demand rose by 78 Bcm (billion cubic meters) in 2024, almost two percent increase, and is set to grow another 71 Bcm in 2025, driven largely by Asia and other emerging economies. This growth underscores that demand continues to climb steadily, even as infrastructure gaps and new drivers of demand risk outpacing readiness.

Global Energy Demand and Scenarios

The IGU notes that global energy demand is expected to follow an upward trajectory through 2030, with natural gas playing a central role in balancing the system. In 2024, the power sector alone accounted for 39 bcm, more than half the global gas demand growth that year, reflecting the increasing reliance on natural gas to meet rising electricity needs, particularly in Asia and other emerging economies. If current demand trends continue, global gas demand could exceed scenario pathways projected by leading institutions by as much as 8–90 exajoules (EJ) by 2030.

As IGU’s Report shows, global demand for natural gas is not only climbing but is running ahead of modeled net-zero pathways, driven in large part by power generation growth. This highlights that even as renewables expand, natural gas remains indispensable for meeting baseline and peak projection. For the United States, this strengthens why LNG exports are critical and essential to help balance the faster-than-expected demand from Asia and other emerging economies.

SOURCE: IGU Global Gas Report 2025

U.S. Demand and Infrastructure Growth

In the United States, natural gas demand rose by approximately 18-19 bcm in 2024, partially driven by record-breaking summer heatwaves that pushed electricity demand to new highs, alongside steady industrial and transportation consumption. The IGU projects U.S. gas demand will climb another 10 bcm in 2025, largely in the residential and commercial sectors. Looking ahead, demand is expected to grow mainly in residential and commercial sectors.

At the same time, the United States has not only become the world’s largest LNG exporter but also set new records in 2024, exporting more than 116 bcm of LNG. U.S. LNG has become a critical supply lifeline for Europe as pipeline flows from Russia remain constrained.

This surge in both domestic consumption and continued strong exports underscores both America’s central role in global energy markets and the mounting pressure on U.S. infrastructure. The report warns that without targeted investment in new supply, liquefaction plants, pipelines and storage facilities, the United States may struggle to keep pace with demand at home and abroad.

Per the report, Asia and other emerging economies drove the bulk of global gas demand growth in 2024, while Europe’s LNG imports also rose significantly through the first half of 2025, reflecting ongoing energy security challenges. Thus, ensuring adequate infrastructure at home will allow the United States to continue serving allies overseas while maintaining affordable and reliable energy for American households.

SOURCE: IGU Global Gas Report 2025

This echoes key American business and trade groups such as the IPAA, Chamber of Commerce, and the National Association of Manufacturers who have urged Congress to quickly streamline the nation’s permitting laws in order to expand critical infrastructure:

“America’s economic competitiveness depends on our ability to build critical infrastructure quickly. With electricity demand surging from AI, manufacturing, and industrial growth, we need unprecedented levels of new energy production, transmission, and pipeline infrastructure—and we need it now.”

Rising Energy Uncertainty: Technology, Climate, and Geopolitics

The IGU also highlights that natural gas is increasingly critical in addressing emerging uncertainties in the global energy system. In 2024, global gas demand jumped by 78 bcm, with much of the increased tied to hotter-than-average summers in China, the United States and Europe. IGU warns that climate extremes could trigger recurring demand shocks, further straining grids already coping with the variability of renewables.

At the same time, new technologies are reshaping demand. The rapid expansion of data centers and AI are also contributing to increases in electricity demand particularly in North America and Asia. These shifts require reliable, flexible sources like natural gas, which is uniquely positioned to ramp up when renewables are not available.

As showed below, gas continues to play a stabilizing role during periods of peak electricity use, ensuring system resilience, particularly now with rising electricity demand from AI, data centers, and extreme heatwaves put stress on the grid.

SOURCE: IGU Global Gas Report 2025

Infrastructure Needs and Gaps

The IGU report also warns that while global natural gas demand continues to rise, supply could be constrained by infrastructure limitations. Investment in liquefaction is not keeping pace. For example, in 2024, just 9 bcm of new LNG capacity came online, even as demand grew by 78 bcm. The report shows that roughly 270 bcm of new liquefaction capacity is under construction, however, a  mix of permitting delays, unclear regulations, and local opposition mean much of it will not be available until after 2026.

In contrast, regional regasification buildouts were stronger, with Asia adding 37 bcm, the Middle East 30 bcm, and Europe 19 bcm in 2024. However, these additions still lag behind demand growth. Without more streamlined processes, supply may struggle to keep up with demand.

Bottom Line: The Global Gas Report 2025 delivers a clear message: natural gas is critical for meeting growing energy needs and keeping power systems stable, especially as new drivers like heatwaves and AI increase electricity demand. But without investment in production, LNG infrastructure, and storage, supply shortfalls could emerge, putting energy security at risk. Timely action will help ensure natural gas can continue to provide reliable, flexible support as demand rises and the global energy landscape evolves.