IGU and Snam 2026 Global Gas Report finds record demand and stronger resilience during Strait of Hormuz supply disruption

Global natural gas demand hit an all-time high of 148.39 trillion cubic feet in 2025—up 1.7% year-on-year—according to the 2026 Global Gas Report released by the International Gas Union (IGU) and Snam.

The report’s second headline finding may be just as significant. When the 2026 Strait of Hormuz crisis knocked out roughly 20% of global LNG supply, the gas system absorbed the shock with far less price disruption than the 2022 energy crisis. The report credits years of deliberate investment in supply diversification, LNG infrastructure, and storage capacity.

Report published as global gas demand hits all-time high

The 2026 Global Gas Report is the International Gas Union and Snam’s annual assessment of the global gas market. This year’s edition opens with a striking number: 148.39 trillion cubic feet consumed worldwide in 2025, a 2.44 trillion cubic foot jump over the prior year..

Continued investment across LNG supply, regasification capacity, storage, and diversified supplier portfolios is essential as the energy system grows more complex.

Growth was broad-based—every region except Oceania posted higher demand. Asia led the way, adding 882.9 billion cubic feet, followed by the Middle East at 635.7 billion cubic feet and Europe at 353.1 billion cubic feet. On the end-use side, residential and commercial heating drove the largest absolute increase at 1.13 trillion cubic feet. Industry added 706.3 billion cubic feet, while power generation contributed 600.3 billion cubic feet.. Industry added 20 billion m³, while power generation contributed 17 billion m³.

Supply kept pace. Global gas production also set an all-time record at 146.45 trillion cubic feet in 2025, with North America alone contributing 1.91 trillion cubic feet of additional output—more than every other growing region combined.

Strait of Hormuz crisis tests the gas system in 2026

Those record 2025 numbers set the stage for a serious stress test the following year. The 2026 Strait of Hormuz crisis constrained around 20% of global LNG supply—equivalent to roughly 3% of total global gas supply, a significant disruption by any measure.

The knock-on effects were real. Global gas production is expected to fall by 141.3 billion cubic feet (-0.1%) in 2026, which would mark the first supply decline since 2022. Losses in Middle East output are largely offset by continued US production growth, but the net result is still a contraction. Global demand is expected to moderate by 247.2 billion cubic feet (-0.2%)—also the first demand decline since 2022.

The report frames the Hormuz crisis as the most significant stress test of the global gas system since 2022. What followed is where it gets interesting.

Price impact far smaller than in 2022 due to prior investment in resilience

Despite the scale of the disruption, gas prices didn’t spiral. TTF prices peaked above US$20/MMBtu (€60/MWh) during the 2026 crisis—which sounds high until you compare it to the 2022 peak of more than US$70/MMBtu (€227/MWh). The difference is stark.

The report is direct about why. Investment made after 2022 in diversified supply, expanded LNG capacity, regasification terminals, storage infrastructure, and procurement flexibility gave the system room to absorb the shock. Alternative supply sources were available, storage buffered the worst of it, and buyers could adapt.

As the report puts it, the resilience was built before the crisis arrived—not improvised during it. The lesson drawn is equally direct: resilience can’t be treated as a fixed achievement. Continued investment across LNG supply, regasification capacity, storage, and diversified supplier portfolios is essential as the energy system grows more complex.

Data centers, AI, and electricity demand identified as key drivers of future gas consumption

If the Hormuz crisis illustrated the system’s current resilience, the data center boom illustrates the pressure that resilience will face going forward.

Global data center capacity reached 141 GW at end-2025, spread across nearly 7,000 facilities—more than double the level of five years earlier. The pipeline could exceed 500 GW by 2030, with around 64% of that capacity targeting AI workloads. That’s a massive, fast-moving source of electricity demand, and the infrastructure timeline doesn’t match it.

Data centers can be built in one to three years. Grid infrastructure takes 5 to 15 years. That gap increases reliance on dispatchable energy sources, and gas fits that role directly. Power generation already accounted for 34% of global gas demand in 2025—the largest end-use sector. Transport was the fastest-growing, up 317.8 billion cubic feet. If current trends hold, the report projects global gas demand could reach 159.48–161.57 trillion cubic feet by 2030.

US becomes world’s largest net gas exporter; low-emission gases and carbon capture expand

The geopolitical map of gas supply shifted in 2025. The United States overtook Russia to become the world’s largest net gas exporter, shipping out 5.90 trillion cubic feet. US LNG alone supplied more than half of Europe’s LNG imports—a remarkable shift from just a few years ago.

On the low-emission side, the industry posted measurable progress across two fronts. Biomethane capacity rose 15% in 2025 to 582.7 billion cubic feet and is expected to more than quadruple from 2020 levels by 2030. Operational carbon capture capacity increased by 8.8 million short tons per year in 2025—the largest annual increase since 2020—bringing the total to 81.6 million short tons per year, with a further 21.5 million short tons per year.

Digital investment is accelerating alongside these shifts. Global exploration and production digital and AI spending reached approximately US$25 billion in 2025, reflecting the sector’s push toward efficiency and emission abatement.

Key highlights of the 2026 Global Gas Report

The 2026 Global Gas Report delivers several clear conclusions. Global gas demand and production both hit all-time highs in 2025, driven by growth across nearly every region and end-use sector. The Strait of Hormuz crisis disrupted supply but triggered far less price volatility than 2022, thanks to investments made in the intervening years. Data centers and AI are emerging as a significant new demand driver, creating a structural need for dispatchable supply that gas is positioned to meet. The US has cemented its role as the world’s dominant gas exporter, and progress in biomethane and carbon capture—while still early-stage relative to total supply—continued moving in a positive direction.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.