IEA Expect Tight Market Into 2023

Natural gas markets are expected to remain tight into 2023 as Russia further reduces supplies to Europe according to the Gas Market Report from IEA.

• European buyers have strongly increased their LNG procurement, resulting in market tightening and demand destruction in various importing regions. The tightening is causing significant harm to consumers, businesses and entire economies in emerging and developing economies not just in Europe.
• Global gas consumption is expected to decline by 0.8% in 2022 with a 10% contraction in Europe and unchanged in Asia Pacific. Global gas consumption is forecast to grow by 0.4% in 2023 with uncertainty over future Russian actions and economic risks.
• IEA forecasts pressure on LNG markets from an increase of over 60bcm this year in Europe’s LNG imports, more than double global LNG export capacity additions.
• A 9% reduction in EU winter gas demand would maintain gas storage levels above 25% in the case of lower LNG inflows. A 13% reduction would sustain storage levels above 33% in the case of low LNG inflows.