Gas supplies are expected to remain tight in 2023 due to a drop in Russia’s piped gas deliveries to Europe.
That’s according to the latest quarterly gas report by the International Energy Agency (IEA) which estimates that the global supply of liquefied natural gas (LNG) is only forecast to increase by 4%.
The report suggests the level of Russian pipeline gas supplies is a major uncertainty for the remainder of 2023.
If flows to the EU continue at the levels seen in the first quarter, Russian piped gas deliveries to advanced economies in Europe would drop by 45% (or over 35 bcm) in 2023 compared with 2022.
The US is projected to be the largest LNG exporter, according to the IEA.
Although global gas demand is expected to remain flat, higher demand in Asia Pacific and the Middle East will offset expected declines in Europe and North America.
The report also notes that gas demand in advanced European economies is set to fall by 5% due to expanding renewables, while North America’s gas demand will drop by 2%.
