Global gas flaring hits $54bn despite growing energy shortages

Global gas flaring increased for the third consecutive year in 2025, reaching 167 billion cubic metres (bcm) and resulting in the loss of an estimated $54 billion worth of natural gas. The continued waste comes at a time when many countries, particularly developing nations, are grappling with energy shortages.

Capturing and utilising this gas could improve energy security, expand electricity generation, support economic growth, create jobs and significantly reduce emissions.

The annual Global Gas Flaring Tracker, released today by the World Bank Group, finds flaring volumes in 2025 nearly equal Africa’s entire annual gas consumption and exceed annual LNG (liquefied natural gas) volumes transiting the Persian Gulf.

Nine countries, Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria, Nigeria, and the United States, account for more than four-fifths of global flaring while accounting for nearly half of the world’s oil production.

“At a time when many countries are struggling to increase affordable and reliable energy, the economic development costs of continued flaring are simply too high,” said Demetrios Papathanasiou, World Bank Group Global Director for Energy. “The gas currently flared could be captured to power industries and businesses, create jobs, and strengthen energy security.”

Many countries import costly gas while also flaring vast amounts of it at their oilfields. Eliminating routine flaring globally would require an estimated $70–100 billion, less than twice the annual value of the gas currently being wasted.

Countries facing energy deficits and high import bills could benefit through greater energy access, increased government revenues and lower energy costs.

However, despite the availability of proven technologies to eliminate routine flaring, progress has remained slow due to weak regulatory frameworks, inadequate investment, limited infrastructure and a lack of commitment from both governments and industry operators.

Where effective policies and regulations, targeted investment, and leadership come together, flaring declines. Governments and operators that act decisively get results. For instance, Kazakhstan has reduced flaring by 87 percent since 2012, including a further 16 percent reduction in 2025 alone.

“The technologies, policies, regulations, and financing mechanisms needed to capture and utilize associated gas are available. What is missing, in too many places, is the leadership, prioritization, and governance needed to put these solutions into practice, creating access to markets and infrastructure.” said Zubin Bamji, World Bank Manager for the Global Flaring and Methane Reduction (GFMR) Partnership. “The cost of inaction will be measured in wasted billions in revenue and energy insecurity for millions of people.”