The IEA projects continued global gas market volatility through 2027 as low European storage levels and geopolitical tensions in the Strait of Hormuz threaten supply security.
Europe is entering the heating season with the lowest gas storage in over a decade, and the IEA says the Strait of Hormuz crisis has seriously affected European and Asian gas markets. That points to a tighter European benchmark and higher TTF prices into 2027, although stronger spot trading and flexible LNG cargoes could limit the upside.
Europe enters the heating season with the lowest gas storage in over a decade, while the IEA says the Strait of Hormuz crisis has seriously affected European and Asian gas markets.
The IEA report warns the global gas market could remain tight well into 2027.
The IEA report warns the global gas market could stay tight well into 2027, with Europe entering the heating season with the lowest storage in over a decade and the Strait of Hormuz crisis hitting Europe and Asia gas markets. Tighter global balances raise demand for flexible LNG and can support U.S. natural gas benchmarks, though expanded destination-flexible cargoes may soften the squeeze.
The IEA warns the global gas market could remain tight well into next year because Europe starts the heating season with the lowest gas storage in over a decade and the Strait of Hormuz crisis has affected Europe and Asia gas markets.
The report notes expanded spot trading, stronger interconnectivity and more destination-flexible LNG cargoes, which could help ease regional tightness.
The International Energy Agency warns that global gas markets face sustained tightness through 2027. Europe enters the critical winter heating season with its lowest storage levels in over a decade, exacerbated by supply disruptions stemming from the Strait of Hormuz crisis.
The projection is driven by historically low European storage levels entering the winter season and ongoing supply chain disruptions caused by the crisis in the Strait of Hormuz.
Expanded spot trading, improved regional interconnectivity, and a higher volume of destination-flexible LNG cargoes are expected to help soften the impact of regional shortages.