The International Energy Agency (IEA) has warned that rising global gas consumption and geopolitical tensions may complicate supply as countries approach winter.
According to the agency's latest report, industrial demand, particularly from Asia, is driving a significant increase in gas usage.
The agency projected global gas demand to rise by over 2.5% this year, reaching a record high of 4,200 billion cubic metres, with an additional increase of 2.3% anticipated by 2025.
One of the main uncertainties as European winter approaches was the transit of Russian gas through Ukraine, the IEA said.
Current contracts were set to expire at the end of 2024, which could potentially halt all Russian gas supplies to Europe via this route, the IEA said, adding that Europe would need to increase its imports of liquefied natural gas (LNG) in the coming year.
This would place additional pressure on global supplies, as LNG is essential for maintaining the balance between supply and demand.
The IEA said that while bottlenecks in the Panama Canal and the Red Sea were impacting shipping, they had not yet resulted in a decline in LNG supplies.
However, these issues expose vulnerabilities in the LNG trade within an increasingly interconnected global gas market.
The agency recommended increasing flexibility in the gas and LNG value chains and emphasized the importance of integrating Ukraine's gas storage system into the global market.
