The International Energy Agency (IEA) has urged global cooperation to ensure security of supplies amid a tightening global gas market.
In its quarterly gas market report released in Paris on Tuesday, the IEA highlighted efforts from the past year to enhance market transparency, data sharing, and cooperation mechanisms for both natural gas and liquefied natural gas (LNG).
However, the intergovernmental body warned that as global demand rose and supply grew more slowly, the natural gas market would remain tight through 2025.
The IEA said the cessation of Russian gas transit through Ukraine at the start of the year had not yet posed an immediate risk to European supply; however, it could drive up LNG demand in Europe and further tighten market conditions.
It said growth in Asia drove gas demand, as Asia’s rapidly expanding markets were a significant driver in global gas demand, which grew by 2.8 per cent 2023.
At the same time, the IEA said the below-average LNG production growth led to a tight supply while extreme weather events added further strain to the market.
The trend is forecast to continue, with new LNG export capacities, particularly in the U.S. and Qatar, only expected to come into operation in the latter half of this decade.
The IEA also pointed to the growing role of natural gas in various sectors as a replacement for oil.
It said in the Middle East, the switch from oil to gas in the electricity sector is progressing, while in China, gas-powered trucks are increasingly replacing diesel vehicles.
As weather extremes intensify, natural gas is playing an increasingly vital role in ensuring the stability of electricity supplies, according to the report. (dpa/NAN)
