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July 21, 2025 | 1 month ago
Natural gas: Algeria consolidates its position on the European market
The monthly report by the Gas Exporting Countries Forum (GECF) reveals contrasting dynamics on the world gas market in the first half of 2025, marked by a remarkable performance by Algeria, which is holding its own in an indecisive context.
The monthly report from the Gas Exporting Countries Forum (GECF) reveals contrasting dynamics in the global gas market in the first half of 2025, marked by a remarkable performance from Algeria, which holds its own in an indecisive context. In June, the European Union imported a cumulative total of 71 billion cubic meters of natural gas via its pipelines, according to data from GECF. This represents a 10% decrease compared to the same period in the previous year. Against this backdrop of general contraction, Algeria stands out as the only supplier to have maintained a positive trajectory, with 2% growth in gas exports to Europe, consolidating its strategic position in this crucial market.
This Algerian performance contrasts with the situation of all other supplier countries, which saw their exports to Europe decline. In particular, the report highlights that in June 2025, none of the five main pipeline gas exporters to the EU recorded annual growth, with the notable exception of Algeria, which maintained its upward trend. Algeria's exports to its two main markets, Italy and Spain, rose by a balanced 2% each year-on-year.
On a global level, the GECF forecasts 2% growth in world gas consumption by 2025, driven mainly by rising demand in North America and Asia. However, this positive trend masks divergent regional developments. In June 2025, EU natural gas consumption dropped by 0.8% to 16.5 billion cubic meters, due to weaker demand in the residential and industrial sectors. Conversely, US consumption rose by 0.6% to 68.5 billion cubic meters, supported by increased demand in the residential, commercial and industrial sectors. In China, apparent gas demand rose by 1.2% in May 2025 to 36.4 billion cubic meters.
On the production side, GECF anticipates a global rise of 2% in 2025, driven mainly by increased production in the Middle East. The United States is maintaining its upward trend, with production reaching 89.8 billion cubic meters in June 2025, a 3.1% year-on-year increase, supported by growth in domestic consumption. In contrast, European production declined by 5.9% year-over-year in May 2025 to 14.3 billion cubic meters, primarily due to lower Norwegian output. In the Asia-Pacific region, supply rose by 2.3% year-on-year, driven by steady growth in Chinese production.
The liquefied natural gas (LNG) market experienced particularly favourable dynamics in June 2025, with global imports increasing 9.4% year-over-year to 34.8 million tonnes, marking the strongest annual growth since November 2022. This increase was mainly led by Europe, benefiting from stronger demand for restocking, lower domestic production and a reduction in pipeline gas imports due to maintenance activities in Norway. US LNG flows continued to favour Europe thanks to more attractive net transfer prices, while the decline in Asia-Pacific LNG imports moderated. Spot prices on European and Asian gas markets rose sharply in June 2025, fueled by heightened geopolitical tensions in the Middle East. TTF spot prices averaged $12.30 per MMBtu, up 6% month-on-month and 14% year-on-year, while Northeast Asian LNG spot prices averaged $12.96 per MMBtu. This price trend, combined with growing demand for gas for cooling purposes during the summer months, is likely to continue exerting upward pressure on prices in the months ahead.
July 21, 2025 | 
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