Low storage buffers in Europe could prolong global gas market tightness well into 2027

Europe is entering the winter heating season with its lowest natural gas storage levels in more than a decade, potentially extending tight conditions in global gas markets well into 2027, according to a new IEA report.

The Global Gas Security Review 2026, out today, examines how a decade of structural changes are reshaping global gas markets and helping importers in some regions weather the supply shock stemming from the current conflict in the Middle East. The report finds that the global gas market has evolved substantially since the Security Review was first published in 2016, becoming more flexible, liquid and interconnected – but also more complex.

The expansion of spot trading and a growing share of destination-flexible liquefied natural gas (LNG) contracts have strengthened the interconnectivity of regional markets and made it easier to withstand supply disruptions. Even so, the effective halt of LNG flows through the Strait of Hormuz – which reduced loadings from Qatar and the United Arab Emirates by more than 60 billion cubic metres (bcm) between March and October of this year – has driven Asian and European prices to their highest level since the 2022-23 gas supply crisis.

The report – which also includes the IEA’s latest quarterly gas market analysis and updated near-term forecasts – projects that global LNG supply will fall by 3%, or almost 20 bcm, in 2026. Global gas demand is expected to decline by around 1.5%, or close to 65 bcm, driven by demand destruction in the Middle East, lower industrial gas consumption in Europe and gas-to-coal switching in the power sector across many countries in Asia.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →