IEA: Balance returning to global gas markets, but uncertainties remain

Balance has gradually begun to return to global gas markets following the shock caused by Russia’s attack on Ukraine, but a number of uncertainties remain. The International Energy Agency (IEA) said today in its quarterly report on the gas market. It warned, for example, of the threat of reduced availability of liquefied natural gas (LNG) and a further decline in Russian pipeline gas supplies to Europe.

„Gas prices in key markets in Northeast Asia, North America and Europe fell by around 70 percent from mid-December to the end of the first quarter of this year, while storage facilities ended the heating season well above their five-year averages. Easing market tensions and relatively well-stocked storage facilities ahead of summer are reasons for cautious optimism about security of supply,“ the IEA said.

Despite this optimism, however, the IEA says „further measures are needed to mitigate potential risks that could quickly reignite market tensions and price volatility“. „Global gas supplies are likely to remain tight this year, and the global balance will face an unusually broad range of uncertainties. These include adverse weather, reduced LNG availability and the possibility of a further decline in Russian pipeline gas supplies to the European Union,“ the IEA warned.