7/5, 10:11 AM (Source: TeleTrader)
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IEA halves 2021-2025 gas demand growth estimates

The International Energy Agency (IEA) stated in its report on Tuesday that the gas demand growth is expected to rise by 140 billion cubic meters between 2021 and 2025, "less than half the amount forecast previously and smaller than the 170 cubic meters increase seen in 2021 alone." The agency attributed the change primarily to weaker economic activity and less switching from coal or oil to gas. The report took into account the European Union's decision to decrease gas imports from Russia, projecting a drop of over 55% between 2021 and 2025.

Meanwhile, the export capacities for liquefied natural gas (LNG) are also expected to expand at a slower rate as a result of fewer investments and delays in construction during the COVID-19 pandemic. "This raises the risk of prolonged tight market conditions. While there has been a recent surge in LNG investment decisions, the resulting infrastructure will not be operational until after 2025," the report explained.

Baha Breaking News (BBN) / DJ