10/4/2024–|Last updated: 10/4/202402:45 PM (Mecca time)
The International Energy Agency has warned that rising global gas consumption and geopolitical tensions could complicate supplies as countries head into winter.
The latest report issued by the agency stated that industrial demand, specifically from Asia, is leading to a significant increase in gas consumption.
The agency expected global gas demand to rise by more than 2.5% this year, reaching a record level of 4,200 billion cubic metres, with an additional increase of 2.3% expected by 2025.
Europe is in trouble
Transporting Russian gas through Ukraine is one of the main risks as winter approaches in Europe, according to the agency.
It is noteworthy that the terms of the current contracts are scheduled to expire at the end of 2024, and this may lead to the cessation of all Russian gas supplies to Europe via this route.
The agency added that Europe will need to increase its imports of liquefied natural gas next year, and this will result in additional pressure on global supplies, as liquefied natural gas is necessary to maintain a balance between supply and demand.
The agency said that although bottlenecks in the Panama Canal and Red Sea are affecting shipping, this has not yet led to a decline in LNG supplies.
However, these issues expose the vulnerabilities of LNG trade within the interconnected global gas market.
The agency recommended increasing flexibility in gas and LNG value chains, and stressed the importance of integrating Ukraine’s gas storage system into the global market.
Keisuke Sadamori, Director of Energy Markets and Security at the International Energy Agency, said that the growth in global demand for gas this year and next indicates a gradual recovery from the energy crisis that greatly affected the markets.
But he warned that the balance between supply and demand is still fragile and subject to fluctuations, calling for the need for close cooperation between producers and consumers.
