IEA: LNG Boom to Benefit Türkiye, Europe, and Global Gas Importers
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The global liquefied natural gas (LNG) market is set for a significant transformation, with new capacities coming online in 2026, bringing major advantages to gas-importing nations such as Türkiye, Europe, India, and Japan, according to International Energy Agency (IEA) chief Fatih Birol.
Following discussions in Brussels with Belgium's King Philippe, European Council President Antonio Costa, and NATO Secretary-General Mark Rutte, Birol told Anadolu Agency that the surge in LNG supply will lower gas prices and shift market power from sellers to buyers.
“A massive wave of LNG supply will soon hit the markets, which will help lower gas prices,” Birol stated.
LNG Supply Growth to Reshape Global Gas Market
Several LNG projects initiated in the U.S. and Qatar six to seven years ago are now nearing completion, setting the stage for a supply boom.
- 2023: Global LNG supply increased by only 2% (10 bcm), marking the slowest growth in four years.
- 2024: Supply is expected to rise by 6% (30 bcm) as major projects in North America come online.
- 2026-2029: A sustained LNG supply surge will improve bargaining power for importing nations, particularly in Europe and Türkiye.
“This is good news for Europe, Türkiye, India, and Japan,” Birol noted, emphasizing the shift towards a buyer-friendly gas market.
Europe’s Energy Crisis: High Costs and Economic Risks
Despite an improving gas supply outlook, Europe continues to grapple with high energy prices, particularly due to cold weather conditions.
- Gas prices in Europe remain five times higher than in the U.S.
- Electricity prices in Europe are four times higher than in China.
“The high cost of energy is eroding Europe’s competitive edge in global trade,” Birol warned. “If a solution is not found, Europe’s economy—particularly its industrial sector—could face serious turbulence, leading to employment challenges.”
Türkiye’s Expanding Energy Portfolio and Role in Regional Supply
Birol praised Türkiye’s energy diversification strategy, including its increasing reliance on renewable energy and efforts to expand nuclear power.
- Türkiye now sources gas from multiple suppliers, including Turkmenistan.
- Significant progress has been made in wind and solar power expansion.
- Nuclear technology is seen as a key area for future growth.
“Hopefully, Türkiye will take further steps in nuclear technology to broaden its energy portfolio,” Birol stated.
Stronger Türkiye-EU Energy Cooperation on the Horizon
Birol also highlighted Türkiye’s strategic role in energy security for Europe, particularly in gas transportation from Azerbaijan, Turkmenistan, and other suppliers.
“Türkiye plays a crucial role in enhancing Europe’s energy diversity and security,” he emphasized.
Additionally, Türkiye’s expertise in turbine manufacturing presents opportunities for deeper cooperation with Europe in the energy sector.
“I see strong potential for collaboration between Türkiye and Europe in this field,” Birol concluded.
With LNG supply growth on the horizon and Türkiye strengthening its energy partnerships, the coming years could bring cheaper energy, enhanced security, and new opportunities for gas-importing nations worldwide.
