The international liquefied natural gas (LNG) market will remain unstable until the mid-2020s. This is reported by the International Energy Agency (IEA) in its annual report. report.
According to IEA experts, market balance will change after a significant increase in gas liquefaction capacity and a decrease in demand. The agency states that there has been price fluctuation in the LNG markets in recent years due to Russia reducing its supply to Europe. However, starting from 2025, new LNG projects will significantly increase the supply and change the situation. The IEA believes that this will create difficulties for the Russian Federation’s export strategy.
The report states that the world’s gas liquefaction capacity will increase by almost 250 billion cubic meters by 2030. More than half of the increase will be provided by the USA and Qatar. At the same time, gas demand will decrease compared to the 2010s.
According to Andrey Kochetkov, a leading global research analyst at Otkrytie Investments, the IEA is still slightly distorting the truth. “The claim that electric vehicles will significantly change fuel priorities seems quite weak to us. In many parts of the planet, there is a shortage of electricity that is difficult to meet with alternative energy and requires significant investment. Therefore, the peak in gas consumption can be attributed to a later date and can also be attributed to coal consumption,” Kochetkov concluded.
IEA also guessIt is predicted that Russia’s income from gas exports will drop by half by 2030.
Previously at IEA named The timing of the highest oil demand in the world.