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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

The coming glut of gas

5/3/2025

10 min read

Feature

View of LNG gas plant pipework and tanks, and scaffolding, with mountains in background Photo: LNG Canada
Construction work at the 14mn tonne LNG Canada site in Kitimat, British Columbia, November 2024

Photo: LNG Canada

At London’s International Energy Week in February, speakers from the International Energy Agency (IEA), BP and Shell predicted a large increase in natural gas reaching global markets by the end of the decade. At the same time, they, and others, highlighted the importance of reducing methane emissions in producing those fossil-fuel projects, reports New Energy World Senior Editor Will Dalrymple.

While the main theme of IEA Director General Fatih Birol’s speech at the Energy Institute event was about the coming of the age of electricity, he also predicted a near-term bump in gas. Natural gas reaching the market from the end of next year until 2030 would increase current LNG volumes by up to 50%, some 250bn m3. The source of the gas is mainly the US – which recently lifted a temporary ban on LNG export – but also Qatar, and a bit from Canada and some African countries.

 

Birol added: ‘If all goes well and there are no major shake-ups in the world, gas markets will likely turn from a market of the sellers to buyers. That may have implications for the gas prices, and of course they have a link to electricity prices. This will be a change in gas markets.’

 

The occasion, he speculated, might spark a decision from some eastern European countries to consider replacing the Russian gas they continue to buy with other sources.

 

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