BAKU, Azerbaijan, October 16. A new liquefied natural gas (LNG) wave is going to hit the market, said Fatih Birol, Executive Director of the International Energy Agency (IEA), as he addressed the presentation of IEA's World Energy Outlook 2024, Trend reports.
Birol noted that as we approach the second half of this decade, the energy market is entering a new context, characterized by easing fundamentals in the oil and gas sector. "It is a much more comfortable market context," he explained. He highlighted the key reasons behind this shift: "Developments on the energy or oil and gas supply side are driving this change."
Focusing on natural gas, Birol indicated that a significant influx of new LNG is expected to hit the market starting in 2026 and beyond. "The amount of new LNG, mainly coming from Qatar and the United States, will account for about 50% of the LNG capacity we have today—a huge growth," he said.
On the oil front, he pointed to the emergence of new projects in key countries, collectively referred to as the "American quartet." "In the United States, Canada, Brazil, and Guyana, among others, we will see a significant amount of new supply," Birol remarked.
"We are entering a new market context as of 2025, 2026," he stated, emphasizing the abundance of supply and weaker demand in conjunction with the strong movement toward clean energy. "What does this mean? There are serious implications for everybody."
Birol outlined several potential implications of these developments: "First, the ample supply is always good for addressing possible energy security risks. This is good news." He added, "Second, this increased supply would likely exert downward pressure on energy prices, which is beneficial for many energy-importing countries."
However, he cautioned that "in a lower oil and gas price environment, the competition for clean energy alternatives may become more challenging as they have to compete with cheaper fossil fuel rivals." He emphasized the need for stakeholders to pay close attention to these dynamics as they plan for the future.
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