IEA expects tight gas market in 2027, with ‘record low’ winter stocks
dpaParis The International Energy Agency (IEA) says the tight situation on the global natural gas market could persist well into next year. In a report published in Paris on Tuesda...
The International Energy Agency (IEA) predicts a prolonged tight market for natural gas in 2027, with European gas reserves reaching a "record low" during the upcoming winter period. In a report released in Paris, IEA experts warn that the winter replenishment of gas storage facilities is anticipated to intensify demand, potentially sustaining a tense market situation due to the aftermath of the Iran conflict.
According to simulations, gas storage levels in the European Union could drop below 10% by the end of March, though this scenario is considered a worst-case outcome involving further disruptions to liquefied natural gas (LNG) supplies through the Strait of Hormuz and an unusually cold winter. The IEA cautions that Europe's gas market may be particularly vulnerable to cold snaps towards the end of the winter, leading to heightened price volatility by the end of the heating season.
The organization asserts that Europe's low storage levels could significantly increase the necessity for additional injections to replenish inventories during the summer of 2027, potentially prolonging global market tightness well into the next year. Gas prices have skyrocketed this year, more than tripling, primarily due to the US's ongoing war with Iran, including the blockade of the Strait of Hormuz. Gas prices surged on Tuesday after reports emerged of fresh US military strikes on targets in Iran.
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