PARIS: The International Energy Agency (IEA) stated on Thursday that global gas markets are rebalancing but are expected to remain tight in 2023 because of the lower Russian pipeline gas deliveries to Europe.
In 2022, the European and global gas markets faced a significant supply shock when Russia reduced its pipeline gas supplies to the EU by 80 percent, triggering a global energy crisis.
However, an increase in liquefied natural gas (LNG) exports, mild weather, and a strong decline in demand helped to cushion the shock, leaving Europe countries’ storage 60 percent full.
Gas price volatility
Despite the positive outlook, the IEA report added that the global gas supply would remain tight in the current year, and the global balance is subject to unusual uncertainties.
The risks include adverse weather, such as lower availability of LNG, a dry summer, and the possibility of a further decrease in Russian deliveries to Europe, which could renew market tensions and price volatility.
In European nations, gas consumption fell by a record 16 percent, during the 2022/23 heating season.
The report stated that the EU only needs half of the storage injection level seen in summer 2022 to reach its 90 percent storage target.
