Global LNG Expansion to Benefit Europe, Turkey, and Asia Amid High Energy Costs: IEA Chief
The global liquefied natural gas (LNG) market is set for a major transformation, with new LNG capacities coming online in 2026, bringing significant advantages for gas-importing nations such as Europe, Turkey, India, and Japan, according to International Energy Agency (IEA) chief Fatih Birol.
Speaking after meetings in Brussels, Birol emphasized that LNG projects initiated years ago in the US and Qatar are now nearing completion, leading to a substantial supply surge that will lower gas prices. This shift will enhance the bargaining power of importing nations, moving the market from seller-dominated to a more balanced structure.
Despite a slow 2% increase in global LNG supply last year, production is expected to grow by 6% in 2024, with major projects in North America boosting output. By 2030, additional LNG export capacities exceeding 270 billion cubic meters per year are expected from projects under construction.
However, Birol warned that persistently high energy prices in Europe, exacerbated by cold weather and post-Ukraine war supply disruptions, continue to threaten the continent’s industrial competitiveness. He stressed that without a resolution to Europe’s energy cost crisis, its economy could face severe turbulence and employment challenges.
Alongside LNG expansion, nuclear power is witnessing its largest growth in 30 years, with over 60 reactors under construction worldwide. Birol highlighted Belgium’s shift towards supporting nuclear energy and underscored the future role of small modular reactors by 2030. Turkey, meanwhile, has diversified its energy sources, including gas imports from Turkmenistan, and is making strides in renewable and nuclear energy.
Strengthening energy cooperation between Turkey and Europe could further bolster regional energy security, particularly through Turkey’s role in transporting gas from Azerbaijan and Central Asia to European markets.
