A report by the IEA has found that growing liquified natural gas (LNG) supply, particularly from North America and more flexible trading arrangements are helping markets weather the Hormuz supply shock.
The Global Gas Security Review 2026 says Europe is entering the winter heating season with its lowest natural gas storage levels in more than a decade, potentially extending tight conditions in global gas markets well into 2027.
According to the report, low storage combined with limited storage options in LNG importing countries in Asia and South America, could intensify competition for a scarce number of flexible cargoes in the coming months and put upward pressure on spot prices.
The report examines how a decade of structural changes are reshaping global gas markets and easing the pressure for importers in some regions.
The expansion of spot trading and a growing share of destination-flexible LNG contracts have strengthened the interconnectivity of regional markets and made it easier to withstand supply disruptions.
However, the halt on supply through the Strait of Hormuz has driven Asian and European prices to their highest level since the 2022-2023 gas supply crisis.
The IEA projects that global LNG supply will fall by 3%, or almost 20 bcm, in 2026. Global gas demand is expected to decline by around 1.5%, or close to 65 bcm.
This is driven by falling demand in the Middle East, lower gas consumption in Europe an gas-to-coal switching in the power sector across Asia.
The IEA say the findings highlight the importance of strengthening international cooperation on gas supply security, even as global markets become more flexible.
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