Growing demand for liquefied natural gas due to the war in Ukraine and oil production cuts. These are the main reasons why the world is facing its first truly global energy crisis, according to the head of the International Energy Agency (IEA).
Unexpected events may not come
“Barring an extremely cold winter, barring unexpected events such as we saw with the Nord Stream pipeline explosions, Europe should survive this winter with fewer economic and social bruises,” IEA chief Fatih Birol said during an address at Singapore International Energy Week on Tuesday.
Pessimistic prospects for next year
However, he said, the European and global economies face a big risk next year. There could be a shortage of liquefied natural gas on the market, which is more likely to see demand grow. This is because of the European Union’s suspension of gas purchases from Russia and the expected recovery in demand in China.
About 20 billion cubic meters of liquefied natural gas will enter the world market next year, Birol estimates. And that might not cover the additional demand, which would lead to a rise in the price of LNG. OPEC+ oil production curbs will have a similar effect, Birol said.
