Prelims: Current events of national and international importance| Indices and Reports
Why in News?
The Global Gas Report 2026 reported that global natural gas demand is projected to decline by 7 bcm in 2026, mainly due to disruptions around the Strait of Hormuz.
- Released by – International Gas Union (IGU), Snam and Rystad Energy.
- Strait of Hormuz – The disruption around the Strait of Hormuz constrained around 20% of global LNG supply.
- This is equivalent to about 3% of total global natural gas supply.
- Asia and Africa are particularly vulnerable because of their dependence on imported LNG and sensitivity to price increases.
- Global LNG trade declined 4% during January–June 2026, with over 80% of the import shortfall concentrated in Asia.
- India aspect – India recorded a peak electricity demand of 271 GW in May 2026 amid severe heatwaves.
- Gas-based power plants increased gas purchases on the Indian Gas Exchange (IGX) by about 340% YoY during April–May.
- Solar power met daytime demand, while gas-based generation provided flexibility during evening and night.
- Every 1°C rise in outdoor temperature in India was associated with more than 7 GW additional peak demand in 2024, compared with around 4 GW in 2019.
LNG (Liquefied Natural Gas)
- Natural gas is cooled to approximately −162°C to convert it into a liquid.
- Liquefaction reduces its volume substantially, enabling transportation by specialised ships.
- At the destination, LNG is converted back into gas through regasification.
Reference
Down To Earth| Global Gas Report 2026
