LONDON: A rebound in global gas demand to 2024 following a record fall last year is poised to knock the world off track for a climate goal of achieving net zero emissions by 2050, the International Energy Agency (IEA) said on Monday.
More than 190 countries have signed the Paris agreement designed to limit global warming to 1.5 degrees Celsius, which will require a huge reduction in the use of fossil fuels such as coal and gas.
“Natural gas demand is set to rebound strongly in 2021 and will keep rising further if governments do not implement strong policies to move the world onto a path toward net-zero emissions by mid-century,” the IEA said in its latest gas outlook.
Gas demand in 2021 is expected to rise by 3.6 percent as global economies recover following a record fall in 2020 due to restrictions to limit the spread of the novel coronavirus.
From 2022-2024 demand growth is expected to average 1.7 percent per year, meaning gas demand would be too high to keep to the IEA’s roadmap toward meeting global net zero emissions by 2050.
The IEA in May published a pathway for the energy sector to meet the net zero emissions target and said investors should not fund new oil, gas and coal supply projects.
But new demand could be met by projects already approved or under development before the pandemic, the latest report said.
Global gas prices have soared to multi-year highs over the past month, with high temperatures driving demand for power generation in the northern hemisphere for air conditioning and as some regions such as Asia seek to boost stocks before winter.
The report said Europe’s benchmark Dutch gas prices are expected to average $9.5 per million British Thermal Units (MBtu) in 2021, their highest since 2013, while Asian spot LNG prices are expected to average $11/MBtu, the highest since 2014.
In Monday’s report the IEA said the gas industry should ramp up efforts to reduce emissions such as addressing methane leaks.
Rebound in global gas demand threatens international climate targets, warns IEA
https://arab.news/6y464
Rebound in global gas demand threatens international climate targets, warns IEA
- Global gas prices have soared to multi-year highs over the past month
- IEA in May published a pathway for the energy sector to meet net zero emissions target
Closing Bell: Saudi main index rises to 10,894
RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward trend for a third consecutive day this week, gaining 148.18 points, or 1.38 percent, to close at 10,893.63 on Tuesday.
The total trading turnover of the benchmark index stood at SR6.05 billion ($1.61 billion), with 144 listed stocks advancing and 107 declining.
The Kingdom’s parallel market Nomu also rose by 81.35 points to close at 23,668.29.
The MSCI Tadawul Index edged up 1.71 percent to 1,460.89.
The best-performing stock on the main market was Zahrat Al Waha for Trading Co., with its share price advancing 10 percent to SR2.75.
Shares of CHUBB Arabia Cooperative Insurance Co. increased 8.27 percent to SR23.04, while Abdullah Saad Mohammed Abo Moati for Bookstores Co. saw its stock climb 6.17 percent to SR50.60.
Conversely, the share price of Naseej International Trading Co. declined 9.90 percent to SR31.48.
On the announcements front, Arabian Drilling Co. said it secured three contract extensions for land rigs with energy giant Saudi Aramco, totaling SR1.4 billion and adding 25 active rig years to its backlog.
In a Tadawul statement, the company said one rig is currently operational, the second will begin operations by the end of January, and the third — currently suspended — is expected to resume operations in 2026.
Since November 2025, Arabian Drilling has secured seven contract extensions amounting to SR3.4 billion, representing 55 committed rig years.
The three contracts have durations of 10 years, 10 years, and five years, respectively.
“Securing a total of SR1.4 billion in new contracts and expanding our backlog by 25 rig-years demonstrates both the trust our clients place in us and our ability to consistently deliver quality and reliability,” said Ghassan Mirdad, CEO of Arabian Drilling, in a statement.
Shares of Arabian Drilling Co. rose 3.15 percent to SR104.70.
Separately, Alkhorayef Water and Power Technologies Co. said it signed a 36-month contract valued at SR43.35 million with National Water Co. to operate and maintain water networks, pumping stations, wells, reservoirs, and related facilities in Tabuk.
In October, Alkhorayef Water and Power Technologies Co. announced it had been awarded the contract by NWC.
In a Tadawul statement, the company said the financial impact of the deal began in the fourth quarter of 2025.
The share price of Alkhorayef Water and Power Technologies Co. declined 0.49 percent to SR120.70.
