IEA: Tight Natural Gas Market for Years Due to War

The International Energy Agency (IEA) warns that the global natural gas market will remain tight for at least two years due to the ongoing conflict in the Middle East and damage to infrastructure.

According to the IEA report, the war has delayed the expected oversupply of liquefied natural gas (LNG), despite the start-up of new production capacities, mainly from the United States. The impact of this expansion is delayed by at least two years.

The energy group Vitol Group had warned earlier that global supply could be affected until 2028 due to damage to LNG facilities in Qatar and delays in new projects in the Middle East.

The IEA estimates that the combination of short-term supply losses and slower growth in production capacity could lead to a cumulative deficit of approximately 120 billion cubic meters of LNG between 2026 and 2030, including delays in the North Field East expansion project in Qatar.

Demand has declined in key import markets due to higher prices, mild weather conditions and consumption restriction policies. Many Asian countries are turning to alternative fuels and demand management measures.

"Demand adjustment will be critical to balancing the global natural gas market," the International Energy Agency notes.