2026 Global Gas Report shows more demanding energy future

The global gas system entered 2026 from a position of strength, with natural gas demand reaching a record 4,202 billion cubic meters (bcm) in 2025, an increase of 69 bcm or 1.7%, according to the 2026 Global Gas Report by European energy infrastructure operator Snam and the International Gas Union (IGU).

The system has become more diversified, more flexible and significantly more resilient to disruption, the report stated, while warning that the next challenge will be ensuring that this resilience keeps pace with a rapidly changing and increasingly demanding global energy system.

The findings come as the global energy landscape faces simultaneous pressures from geopolitical disruption, growing electricity demand, extreme weather, expanding LNG trade, the rapid growth of artificial intelligence (AI) and data centers, as well as from the global gas industry’s continuing need to reduce emissions.

Geopolitical factors

The Strait of Hormuz crisis of 2026 provided the most significant test of the global gas system since the energy crisis of 2022. The disruption constrained around 20% of global LNG supply, equivalent to roughly 3% of total global gas supply.

Global gas production is expected to fall by 4 bcm (-0.1%) in 2026, with the impact on Middle East production largely offset by robust production growth in the US and other regions. Global demand is also expected to moderate downwards by 7 bcm (-0.2%). This would represent the first decline in supply and demand respectively since 2022. However, the impact was markedly different from 2022.

Gas prices rose but remained well below the extremes seen four years ago. TTF prices peaked above US$20 per MMBtu (EUR 60/MWh), compared with more than US$70 (EUR 227/MWh) during the 2022 crisis. This greater resilience reflects the investment made since 2022 in diversified supply, LNG capacity, regasification, storage and procurement flexibility. Alternative sources of supply were available, storage helped buffer the disruption and buyers were able to adapt.

Natural gas demand

In 2025, the global natural gas demand increased across every region except Oceania. Residential and commercial heating accounted for the largest increase, at 32 bcm, followed by industry at 20 bcm and power generation at 17 bcm. Power remained the world’s largest end-use sector, accounting for 34% of global gas demand. Asia recorded the largest regional increase, adding 25 bcm, followed by the Middle East at 18 bcm and Europe at 10 bcm. Transport was the fastest growing sector, increasing by 9 bcm.

Global gas production reached an all-time high of 4,147 bcm in 2025, with North America accounting for 54 bcm of additional supply – more than every other growing region combined.

The United States also overtook Russia to become the world’s largest net gas exporter, exporting 167 bcm in 2025, while US LNG supplied more than half of Europe’s LNG imports. If recent demand trends continue, the global gas demand could reach between 4,516 and 4,575 bcm by 2030, the report indicated, reinforcing the need for continued investment in production, LNG, regasification and storage to keep pace with demand.

Global data center capacity reached 141 GW at the end of 2025, across almost 7,000 facilities, more than twice the level of five years earlier. The full pipeline could exceed 500 GW by 2030, with around 64% targeting AI.

A significant push for innovation is driving the global gas industry forward into the future as a growing number of industry players are banking on modular infrastructure, AI & digitalization and emission abatement. Evidence in this regard is the global Exploration & Production digital and AI spend which, in 2025, was approximately US$25 billion.

Industry innovation is also building new markets in low-emission gases and carbon removals. The global biomethane capacity rose by 15% in 2025, to 16.5 bcm, and is expected to more than quadruple capacity to 2030 (from 2020 levels). Carbon capture is also advancing. Operational capture capacity increased by 8 million tonnes per annum (Mtpa) in 2025 – the largest annual increase since 2020 – bringing the total operational capacity to 74 Mtpa. A further 19.5 Mtpa reached final investment decision in 2025.

Ongoing energy resilience

“The Global Gas Report 2026 tells us something important about the energy system: resilience is not accidental. It is built through investment, diversity, flexibility and the ability to adapt,” said Menelaos (Mel) Ydreos, the Secretary General of the International Gas Union. “The global Gas system faced a major geopolitical shock in 2026. It responded more effectively than it did four years ago because the world had invested in LNG, storage, infrastructure and more diverse sources of supply.

“But resilience cannot be a destination. As electricity demand rises, AI and data centres expand, extreme weather places new pressures on energy systems and the world continues to pursue emissions reduction, we need to think carefully about the energy system we are building for the future. The question is no longer simply how much energy we will need. It is whether we will have enough reliable, affordable and increasingly low-emission energy when and where we need it.”

“Energy security cannot be taken for granted,” Snam CEO Agostino Scornajenchi commented. “Across the last four years, the system held together not by chance, but because of the flexibility and diversification built into it over years of investment. In this environment, natural gas continues to play a crucial role, balancing the system when renewables are unavailable, safeguarding adequacy and underpinning security of supply. Continuing to invest in resilient, flexible as infrastructure allows the system to absorb unexpected shocks while remaining competitive.”