[IEA]：Gas Market Report, Q1-2021

Global Gas Demand: The global gas demand fell by 2.5% (or 100 billion cubic meters) in 2020, marking the largest drop on record.
Price Volatility: Gas prices experienced historical lows and extreme volatility.
Market Trends: The pandemic and well-supplied markets slowed investment, while gas market reforms and clean gas policies gained momentum.

Winter 2020-2021: Gas demand recovered rapidly in the fourth quarter of 2020, but the beginning of the heating season in the northern hemisphere was less supportive due to mild temperatures.
Price Rally: Cold temperatures in December 2020 led to a price rally in both Europe and Asia. Spot LNG prices in Asia broke historical records, tripling in the first few weeks of 2021.

Global Demand: Expected to grow by 2.8% (about 110 bcm) in 2021, recovering to the 2019 level.
Regional Differences: Mature markets faced significant demand drops in 2020, while emerging markets will drive demand growth in 2021. Fast-growing markets in Africa, Asia, Central and South America, and the Middle East are projected to account for about 70% of global demand growth.
Sectoral Uncertainties: Growth in power generation could be hampered by slow electricity demand growth and increasing inter-fuel competition. Industrial consumption depends heavily on economic recovery, particularly in export-driven industries. Residential demand could be negatively impacted if weather becomes milder.

Resilience: Gas use in power generation was resilient, falling only 2% globally in 2020.
Regional Trends:
- North America: US gas-fired power generation increased by 3% despite a 2% decline in overall electricity output.
- Europe: Gas-fired power generation rose in the second half of 2020 after a steep decline in the first half, driven by lower nuclear availability and optimization of fuel usage.
- Asia: China saw a 2% increase in gas-fired generation, while India experienced a 9% increase due to cheap LNG prices. Coal-to-gas switching continued in Korea.
- Russia: Thermo power generation fell 10% due to a 3.7% drop in electricity demand and a 12% increase in hydropower output.
- South America: Gas-fired generation dropped significantly in Brazil and Argentina due to favorable hydro conditions and lower electricity demand.

Uncertainty: The recovery in gas demand in 2021 is uncertain due to various risk factors, including fuel switching, slow industrial recovery, and mild weather.
Policy Support: Emerging markets in Asia have stronger policy measures supporting gas use in the long term.

Gas Market Report, Q1-2021