Gas Demand Sees Continued Growth
Global gas demand rose by 78 billion cubic metres in 2024, fueled by extreme heat, industrial activity and the energy needs of artificial intelligence-powered data centres, according to the Global Gas Report by the International Gas Union and operator Snam. The report predicts a similar increase in 2025 as AI infrastructure and weather patterns continue to strain grids. Europe and North America led demand growth in the first half of 2025, with increases of 6.1% and 1.5% respectively. Looking ahead, surges in China and India are expected to drive additional demand over the next five years.
Natural gas remains a central part of the global energy mix, providing stability for power systems with growing shares of renewables. The World Economic Forum’s Fostering Effective Energy Transition 2025 report highlights natural gas as a transitional asset, particularly when combined with carbon capture. At the same time, AI is creating efficiencies across sectors, cutting energy use by up to 60% in some applications, according to the Forum’s Artificial Intelligence’s Energy Paradox paper.
Africa Climate Summit Launches Major Energy Programmes
At the second Africa Climate Summit in Addis Ababa, the African Union and European Union announced two major initiatives: the Continental Energy Programme in Africa (CEPA) and ENGAGE. Funded by the EU and Germany’s development ministry, the programmes aim to build an integrated cross-border electricity market across all AU member states. With more than 600 million Africans lacking reliable electricity access, the initiatives target investment in transmission, renewable generation and efficiency.
Africa’s electricity demand is projected to nearly double by 2040, with capacity expected to grow from 266 GW in 2023 to more than 1,200 GW by 2040. Renewables could expand from 25% to nearly 64% of the mix. The programmes form part of the EU’s $177 billion Global Gateway Africa–Europe Investment Package.
Other Key Energy Developments
- Anglo American and Teck Resources agreed to merge into Anglo Teck, a $50 billion mining giant.
- Oman unveiled a $97.48 billion energy investment plan through 2032, prioritizing green hydrogen.
- Global clean hydrogen investment rose $35 billion in the past year to reach $110 billion, led by China and the US.
- Australia’s Woodside Energy signed a 15-year LNG supply deal with Malaysia’s Petronas starting in 2028.
- China’s renewable surge, led by solar and wind, met 84% of its 2024 electricity demand growth, reshaping fossil fuel use globally.
- Asian energy executives warned that fossil fuel subsidies threaten the region’s clean energy transition amid rising data centre demand.
Forum Perspectives on Energy Transition
Electricity grids worldwide are under pressure as demand rises. The World Economic Forum emphasizes the need to view consumers as “flexumers” — active participants in grid stability through flexible usage, generation and storage. Achieving this shift will require strong incentives, seamless digital platforms and consumer education. At the same time, balancing security, equity and sustainability remains the key challenge as energy technologies advance.
