Global energy crisis reshaped natural gas markets: IEA

The global energy crisis precipitated by Russia's invasion of Ukraine has changed the structure of natural gas markets, requiring closer dialogue between producers and consumers in order to ensure both short- and long-term supply security and reduce emissions, according to the International Energy Agency (IEA).

The IEA said in its annual gas market report, issued on July 17, that tensions in gas markets have eased significantly since the beginning of 2023. The new analysis, however, notes that “deeper coordination among market participants remains essential, given momentous shifts in how gas markets function."

“A new global gas market is taking shape after last year’s crisis,” said Keisuke Sadamori, the IEA’s Director of Energy Markets and Security. “Given this, responsible producers and consumers must reconsider their approaches to supply security and flexibility, cooperating even more closely.”

Sadamori also emphasized the need to meaningful efforts “to reduce the carbon footprint of gas supply chains, including through greater use of low-emissions gases,” adding that he looks forward “to discussing these topics with market players in Tokyo this week”.

The IEA also warned that Europe’s full storage sites are no guarantee against market volatility during the winter.