Average wholesale natural gas prices around the world fell to $4.88 per million British thermal units (MMBtu) in 2024, according to the International Gas Union's (IGU) latest Wholesale Gas Price Survey released on Thursday.
The figure marks a significant decline from the 2022 average of $9.45, reflecting a global downward trend following the energy price shocks of recent years.
In 2024, 49% of global gas consumption was priced through gas-on-gas (GOG) competition-based mechanisms, up from 31.5% in 2005. Meanwhile, the share of oil-price escalation (OPE) mechanisms fell from 24% in 2005 to 18.5% in 2024.
In Europe, GOG pricing was dominant, covering 82% of overall gas consumption, 80% of pipeline imports, and 78% of LNG imports in 2024. This model had previously been limited mostly to the UK in 2005.
Globally, 50.5% of LNG trade was priced using GOG mechanisms in 2024, double the rate recorded in 2016.
Spot LNG imports also reached a record high, accounting for 38% of total LNG trade, with spot volumes rising to 198 billion cubic meters, a threefold increase since 2016.
The report also found that OPE pricing continued to prevail in several Asian markets, including China, India, Japan, and South Korea, where long-term oil-indexed contracts remained widespread.
Total global natural gas consumption reached approximately 4,233 billion cubic meters in 2024. Of this, 28.5% was still subject to regulated pricing structures, particularly in regions such as the Former Soviet Union, the Middle East, and North Africa.
Regional average prices in 2024 were reported as follows:
- Europe: $11.52/MMBtu
- Asia-Pacific: $9.19/MMBtu
- Asia: $8.76/MMBtu
- North America: $2.13/MMBtu
According to the IGU, while global gas prices peaked in 2021 and 2022, average prices in 2024 returned closer to mid-2010s levels.
The survey covered more than 70 countries, representing 96% of global gas consumption.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr