IEA Warns Global Gas Crunch Could Last Well into 2027

The global gas market could remain tight well into next year as Europe enters the heating season with the lowest levels of gas in storage in over a decade, the International Energy Agency IEA said in a new report on Tuesday. Despite the strengthened interconnectivity of the various regional gas markets in recent years, thanks to expanded spot trading and a higher number of destination-flexible LNG cargoes, the Strait of Hormuz crisis has seriously affected gas markets in Europe and Asia, according to the IEA’s Global Gas Security Review 2026.

The lack of meaningful recovery of LNG flows at the Strait of Hormuz and the approaching winter have combined to intensify the competition of spot supply between Asia and Europe, hiking both regional benchmark LNG and gas prices to the…