In early September, during a visit to China by a Russian delegation led by Vladimir Putin, Gazprom CEO Alexey Miller announced an agreement to increase gas supplies via the Power of Siberia pipeline by 6 billion cubic meters annually.

Deliveries along this route began in 2019. This year, 38 billion cubic meters are planned to be supplied to China via the gas pipeline. Following negotiations on September 2, the parties announced an increase in supplies to 44 billion cubic meters per year.

Another highway, the Far Eastern Route, will be a continuation of the existing Sakhalin–Khabarovsk–Vladivostok gas pipeline. It should be launched in 2027. The capacity of this gas transmission system was also increased following the talks between the heads of Russia and China from 10 billion cubic meters to 12 billion cubic meters per year.

On August 29, the Development Research Center under the State Council and the Ministry of Natural Resources of the People’s Republic of China published a joint annual «Report on the development of the Chinese gas industry», which summarized the results of development in 2024 and outlined the main forecasts for 2025. The report indicates that last year the demand for gas in China increased by 7.3%, the share of gas in the energy balance of China increased by 0.3 percentage points and reached 8.8%. The structure of consumption of natural gas did not undergo significant changes: the largest volume of demand was observed in the industrial sector — 41%, a share of «city gas» made 34%, a share of generation and chemical industry — 18 and 7% respectively. Production of nonconventional types of natural gas in China for the first time exceeded 100 billion cubic meters, including slate gas of 25.7 billion cubic meters, coalbed methane — 13.8 billion cubic meters. A share of nonconventional types of gas in national production is 44.5%. Import of natural gas on pipelines in a year increased by 13.1%, the main source of growth is increase in import of gas from Russia along «east» route. Total length of gas pipelines grew by 4 thousand km up to 128 thousand km (including regional and regional pipelines), the volume of UGS increased by 8 billion cubic meters. Total number of the companies having the right for oil and gas production in China reached 70. The number of the importers of LNG having practical experience of import increased from 10 up to more than 20. The number of the companies having the right to transport natural gas on the China Oil & Gas Pipeline Network Corporation’s pipelines reached 765 from which 10% are the small and medium enterprises. It is expected that in 2025 the consumption of gas in China will grow by 2-3%.

In July, experts from the Main Planning Institute at PrtroChina analyzed the prospects for the development of China’s gas industry during the 15th five-year plan (2026-2030). It is expected that gas consumption will continue to grow steadily by 4-5% per year, resulting in demand for gas in China reaching 550 billion cubic meters by the end of the five-year plan. The sector of generation will be the main driver of growth: rated capacities of gas blocks will increase by 77 GW, to 220 GW, and demand for gas in this segment — by 40 billion cubic meters, to 115 billion cubic meters a year. The transfer of industrial consumers from coal to gas can also provide additional demand in the amount of up to 41 billion cubic meters; an important role will be played by the growth of gas consumption in the residential and transport sectors. In particular, the number of trucks by LNG can increase to 1.4 million, and demand for gas in this segment — by 10 billion cubic meters up to 57 billion cubic meters. During the five-year plan, China’s gas production will grow by an average of 8 billion cubic meters per year, and by the end of the period it will reach 290 billion cubic meters.

Increase in demand

In September, the International Gas Union (IGU) published a report stating that global gas demand in 2025 could increase by 1.7%, or 71 billion cubic meters. «Demand for natural gas in 2024 grew by 78 billion cubic meters (1.9%), having reached 4.122 trillion CBM. Growth was caused mainly by significant increase in Asia and North America. It is expected that in 2025 demand will continue to grow and will increase by 71 billion cubic meters (1.7%),» it is told in the document. The main gain is necessary to the Middle East (+28 billion cubic meters, 4.6%), Asia (+16 billion cubic meters, 1.5%) and North America (+10 billion cubic meters, 0.9%).

In the first half of the year the main increase in demand for gas in the world was concentrated in Europe (+6.1%) and North America (+1.5%) that was caused by colder weather which increased demand in inhabited and industrial rooms and also reduction in production of the electric power from renewable sources that led to bigger use of gas in Europe.
According to the IGU forecast, global demand for energy carriers will grow within a decade, especially in anticipation of 2030 — electricity consumption will sharply increase in China and India that will lead to increase in demand for natural gas.

The Ministry of Energy of the Russian Federation expects that consumption of gas in the world by 2030 will grow up to 4.6 trillion about 4.2 trillion cubic meters in 2024 (or for 9.5%).
Global gas demand will grow from last year’s 4.2 trillion cubic meters to 5 trillion cubic meters by 2050, and demand for ammonia will jump at least three times, according to Daria Kozlova, Head of analytics at the Fuel and Energy Complex Analytical Center at the Ministry of Energy of the Russian Federation.

«We made analytical justification under the energy strategy till 2050. Recently there were scenarios when demand for gas was slightly underestimated, now see revision of estimates. Including we see refuse of a part of the RES projects. Gas in many countries, even counting on RES, is the balancing source. Last year the global demand for gas exceeded the level of 2021 — 4.2 trillion cubic meters, we expect on the Energy strategy that by 2050 demand will exceed 5 trillion CBM, and it opens the essential potential for our export-oriented projects,» Darya Kozlova told.

According to her, it is important to understand that the main part of this demand, which will fall on developing countries, including the Asia-Pacific region (APR), is generation, so there is a high potential for exporting gas in pipeline and liquefied form. «We have now announced a number of projects, we understand the difficulties with their implementation, an ambitious goal has been set, and we will try to achieve it together,» Kozlova stressed.

«From the point of view of gas chemistry, the volume of demand there is significantly lower than in generation, but it is there, and it is growing quite fast. By our estimates, by 2050 demand for ammonia will grow a minimum by a third. For methanol, everyone sees quite significant high ratings for demand growth, but it is important to understand that the market is tied, in fact, to one consumer – this is China with all the difficulties that arise, in particular, expensive logistics. If we consider such projects, then they should probably be projects in the Far East, where it is possible to ensure proximity to the market,» she said.

At the same time, Kozlova stressed that in order to achieve ambitious goals for both the domestic market and exports, it will be necessary to introduce unprepared gas reserves. «Objectively, our niche for new production is quite significant, and the issues of stimulating and developing the reserves of Nadym-Pur-Taz are an important factor here, because we understand that objectively the bulk of our gas reserves are concentrated in Western Siberia, and we will have to bring it in,» she concluded.

India

In early September, India’s Minister of Oil and Gas, Hardeep Singh Puri, announced that the country’s authorities plan to increase LNG import capacity by 27% to 66.7 million tons per year by 2030. Two more terminals will be for this purpose constructed. Now India has eight regasification terminals with a general capacity of 52.7 million tons of LNG a year. Also he mentioned that by December of this year the number of the LNG stations for refueling motor transport will grow from 13 to 49 and in the long term to one thousand stations. These steps, by calculations of the government, have to help India to reach net — zero level of emissions by 2070.

Besides, India plans to double by 2030 the number of stations for refueling cars with the compressed natural gas (CNG). At the moment in India 8,150 CNG stations work, in the next five years their number will increase to 18 thousand within the government project «One Nation, One Gas Network» which assumes creation of the uniform gas transmission system in India. This project shows aspiration of the country to reduction of emissions of carbon and satisfaction of energy demand of the growing economy which is still strongly depending on coal.

USA

The Energy Information Agency (IEA) of the US Department of Energy reported that the faster pace of production growth and gas exports will lead to an increase in average gas prices in the US domestic market in 2025 and 2026 to the levels of 4.02 and 4.88 dollars/ million BTU (134 and 162.7 dollars/ thousand cubic meters) respectively. This year the general consumption of gas by internal consumers and the export LNG plants will increase by 4 billion cubic feet per day while gas production will grow less than by 3 billion cubic feet per day. Average daily consumption of gas export LNG productions in 2025, as expected, will be 14.6 billion cubic feet (413.4 million cubic meters) that is 22.7% more than in 2024. In 2026 this indicator will increase to 16 billion cubic feet (453.1 million cubic meters). Because of the spasmodic increase in demand for the electric power from data-processing centers connected with development of AI, consumption of energy in the USA will be record both in the 2025 and in 2026. According to forecasts, electricity demand will increase to 4,193 TWh in 2025 and 4,283 TWh in 2026, up from a record 4,097 TWh in 2024.

Japan and Taiwan

Japan is beginning to show renewed interest in long-term LNG supply contracts due to increased energy demand from data centers as AI technologies develop. In recent years import of LNG to the country was reduced because of restart of nuclear power plants, but now increase in demand for energy accelerates. In a recently adopted strategic energy plan, the country’s government identified gas as a «realistic transition fuel» for achieving carbon neutrality and as an «important source of energy even after it is achieved.» Jera’s CEO, Yukio Kani, stated that two to three years ago, the company expected ammonia to be a promising energy source, but «now we need to take a pause» as the company shifts its focus back to LNG.

Taiwan took the last nuclear reactor out of service recently. It worked 40 years and covers about 3% of needs of the island for the electric power. For a covering of the growing demand for the electric power it is planned to put into operation nearly 5 GW of capacities of gas generation. Last year Taiwan imported 21.13 million tons of LNG.

Egypt

Höegh LNG, a company building floating LNG infrastructure, Australian Industrial Energy Pty Ltd (AIE), and the Egyptian Gas Holding Company (EGAS) have signed an agreement to deploy the Hoegh Galleon floating storage and regasification unit (FSRU) in Egypt.

According to Charles Ellinas, the Head of e-CNHC (E-C Cyprus Natural Hydrocarbons Company Ltd), providing management and consulting services in the oil and gas sector of Cyprus and the surrounding region, «Egypt will stop exporting LNG to Europe within a few months due to a shortage in production and the expected increase in domestic consumption. Egypt has problems. The country was the LNG exporter, and now it imports LNG — they agreed with Jordan to use its FSRU and almost finished negotiations with Höegh LNG on rent of their FSRU. The reason is rapid growth of the population and demand, and besides, problems with production in the country. At peak gas production in Egypt made 200 million cubic meters a day and now — 150 million cubic meters a day and continues to decrease. The offer is not enough for satisfaction of demand therefore Egypt begins to import gas,» he noticed.

Refusal of RES

The largest oil and gas companies abroad reconsider the relation to investments in renewable power and switch to development of the traditional extracting business that can speak about the beginning of a new cycle of investment into the oil sphere. Such a conclusion in the review of the market of oil was drawn by analysts of the consulting company Kept.

In the review it is noted that global demand for oil continues to grow and the largest players of this industry seek to adapt the investment programs to the current realities. In response to fears of investors the large players refused some plans for development in the sphere of the RES.

In particular, the British BP in February, 2025 published the new strategy which provides reduction of investments into RES and increase in oil and gas production. In 2025-2027 the company will reduce capital expenditure to $13-15 billion a year in comparison with $16.2 billion in 2024, but at the same time will increase investments in oil and gas projects for 20% to $10 billion a year. According to the strategy of BP it intends to return to oil production in the Gulf of Mexico and considers new projects in the Middle East. Since 2020 the company set the purpose by 2030 to reduce extraction of hydrocarbons by 40% of the level of 2019 of 2.6 million barrels of an oil equivalent in day and to increase investments into RES but faced low financial performance and discontent of shareholders. In 2024 BP extracted 2.4 million of barrels of oil equivalent a day.

The British-Netherlands Shell recognized that investments into low-carbon power ($15 billion) and low-carbon decisions ($5 billion) in 2024 were unprofitable. The company intends to limit investments into these spheres to less than 10% of the general size of investments, having kept only the most profitable projects. In 2024 the investment program of Shell made $21 billion, in 2025-2028 it has to make $20-22 billion a year.

The Norwegian Equinor reported that it reduces the plan for input of new capacities of RES by 2030 to 10-12 GW (in 2021 planned to enter 12-16 GW by 2030). Also the company raised the forecast for oil and gas production by 2030 from 2 million to 2.2 million barrels of oil equivalent per day. In 2024 the production of Equinor was 2.1 million barrels of oil equivalent per day.

The American ExxonMobil intends to increase the general investments from $27.5 billion in 2024 to $28-33 billion a year in 2026-2030, at the same time having increased oil and gas production from 4.3 million to 5.4 million barrels of oil equivalent per day. The American Chevron will reduce investments into low-carbon projects by a quarter in 2025 to $1.5 billion.
Analysts of Kept explain a turn of policy of oil and gas majors with need of increase in efficiency of investments for «prevention of destruction of shareholder value».

Russia

In addition to implementing export projects Gazprom continues to gasify Russia. In January-August of the current year 12.8 thousand households and 70 boiler houses had an opportunity to pass to network gas. For this purpose since the beginning of year the company constructed 160 inter-settlement and local gas pipelines.

So, in the Sakha (Yakutia) Republic Gazprom constructed a gas pipeline branch with Olekminsk gas distribution station (GDS) from the Force of Siberia gas pipeline and further the inter-settlement gas pipeline to the settlement Olekminsk, the construction of distribution networks comes to the end.

The reliability of gas supply to enterprises in the Syktyvkar industrial complex in the Komi Republic has been increased. Gazprom constructed a new GDS Syktyvkar and the bringing gas pipeline to it. It is created a possibility of giving of additional volumes of gas to consumers. The old gas distribution station, which is less powerful and located within the city limits, will be decommissioned.

In Russian regions the company continues to conduct modernization and reconstruction of GDS which capacities are completely involved. It allows to increase the performance of stations and to connect new consumers to them. In eight months of 2025 such works are performed by Gazprom on 14 GDS in regions of the Central, Siberian and Southern federal districts. The general performance of stations is increased by 2.6 billion cubic meters a year that is comparable, for example, to annual consumption of gas in the Penza or Ulyanovsk regions. About 950,000 Russian families connected their homes to gas during the process of additional gasification. In January-August 2025, 172,400 households were connected, which is 18.7% more than in the same period in 2024. By September 2025, about 1,100 contracts for additional gasification were signed with medical and educational institutions. Gas had been supplied to the boilers of 702 organizations.