While improved liquefied natural gas (LNG) flexibility is easing gas supply shortages, uncertainties remain for the future of the industry.

That’s according to the International Energy Agency (IEA), which suggests even more flexibility is required to reduce risk and ensure ongoing security of supply.

A new report from the organisation illustrates how natural gas markets around the world are being reshaped by the development of “major emerging LNG buyers led by China” and rising exports from the US.

It claims China’s shortfall in supply last winter, which resulted in shocks to the global market, highlighted the vital role of LNG in enhancing gas security and flexibility of supply.

The report also suggests Europe’s response to cold period such as the ‘Beast from the East‘ is evidence of the success of integration and emergency policy measures.

It warns future uncertainties include supply shortages as a result of insufficient investment in production and infrastructure capacity, as well as insufficient shipping capacity growth in the future.

The IEA says these situations would be likely to make prices more volatile and hurt price-sensitive consumers.