IEA warns LNG supply will fall 3% as Europe enters winter with low storage
The International Energy Agency says global LNG supply is set to fall 3%, or almost 20 bcm, in 2026, while gas markets may remain tight into 2027. Energy Live News reports that Europe is entering winter with its lowest gas storage levels in more than a decade; the IEA says flexible LNG trading and rising supply, particularly from North America, are helping markets absorb the Hormuz disruption.
Bottom line — The IEA expects LNG supply to fall almost 20 bcm in 2026, with tight market conditions potentially lasting into 2027.
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The IEA projects global gas demand will decline around 1.5%, or close to 65 bcm, in 2026.
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Energy Live News says the halt to supplies through the Strait of Hormuz pushed Asian and European prices to their highest levels since the 2022–2023 gas crisis.
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According to the IEA, low storage and limited storage options in LNG-importing countries in Asia and South America could intensify competition for flexible cargoes.
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The IEA says expanded spot trading and more destination-flexible LNG contracts have made regional markets better connected and more able to withstand supply disruptions.
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Reuters reports EU gas storage is around 75% full, against a roughly 91% average for this time of year since 2020.
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Reuters says unusually warm forecasts across Japan, South Korea, Taiwan and northern China could reduce heating demand and free up LNG for other buyers.
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