en.Wedoany.com Reported - On the 24th local time, the latest quarterly natural gas market report released by the International Energy Agency (IEA) indicates that the situation in the Middle East has significantly altered the outlook for global natural gas markets. Ongoing supply shocks and infrastructure damage are intensifying price volatility and delaying the process of rebalancing the global gas market.
The report notes that since early March, shipping disruptions in the Strait of Hormuz have created unprecedented uncertainty, with nearly 20% of global liquefied natural gas (LNG) supply exiting the market, triggering sharp price increases in major importing regions. During the severe market fluctuations in March, natural gas prices in Asia and Europe rose to their highest levels since January 2023, leading to a contraction in natural gas demand in major LNG import markets.
The report further states that beyond the short-term shock, this crisis will impact medium-term market prospects. Damage to Qatar's LNG infrastructure is expected to weaken future supply growth and delay the anticipated surge in global LNG capacity expansion by at least two years. The combination of short-term supply losses and slower capacity growth could lead to a cumulative reduction of approximately 120 billion cubic meters of LNG supply between 2026 and 2030. Although new liquefaction projects in other regions are expected to gradually offset these losses, market tightness may persist through 2026 and 2027.
The report emphasizes the need to bolster global natural gas supply security through sustained adequate investment across the entire LNG value chain and enhanced international cooperation between producer and consumer countries. It also highlights that for gas-importing nations, building a diversified portfolio of long-term contracts can help mitigate the risk of price volatility during periods of market disruption.
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