Global LNG surge to benefit Europe, Türkiye, and Asia: IEA chief
New liquefied natural gas (LNG) capacities will come online starting next year, benefiting gas-importing nations such as European countries, Türkiye, India, and Japan, according to the head of the International Energy Agency (IEA).
The surge in global LNG capacity, starting in 2026 and continuing for three years, will bring positive news for Europe, Fatih Birol told Anadolu following talks in Brussels where he met with Belgium’s King Philippe, European Council President Antonio Costa, and NATO Secretary-General Mark Rutte.
Noting that several LNG projects initiated six to seven years ago in the US and Qatar are nearing completion, Birol said: ‘A massive wave of LNG supply will soon hit the markets, which will help lower gas prices.’
This is particularly significant for gas-importing nations like Europe and Türkiye, as the market is shifting from being seller-dominated to favoring buyers, strengthening the bargaining power of importing nations, he explained.
‘This is good news for Europe, Türkiye, India, and Japan,’ Birol noted.
According to IEA data, global LNG supply grew by about 2% last year, marking the slowest increase in four years at just 10 billion cubic meters (bcm).
However, this year’s LNG production is expected to rise by 6%, reaching an additional 30 bcm, driven by several major projects coming online in North America.
Meanwhile, alongside Qatar’s expansion projects, LNG liquefaction plants that have reached financial investment decisions or are under construction would add over 270 bcm per year of export capacity by the end of 2030.
– ‘High gas prices in Europe causing crisis’
Birol noted that natural gas prices have remained high in Europe, particularly due to cold weather conditions, and emphasized that the continent has yet to resolve its gas supply dilemma.
Following the Russia-Ukraine war, EU nations aggressively tried to reduce their reliance on Russian energy supplies, significantly increasing their LNG imports. This surge led to record-high gas and LNG prices globally, particularly in the European market.
‘Energy prices in Europe are significantly higher compared to major economic powers like the US, China, and India,’ he added.
‘On average, natural gas prices in Europe are five times higher than in the US, while electricity prices are four times those in China,’ he said.
Noting that exports are the backbone of the European economy, Birol said that the EU is the world’s largest exporting economy, surpassing both the US and China.
As energy prices are excessively high, Europe’s competitive edge in global trade diminishes, Birol said. ‘As a result, the European economy, particularly its industrial sector, is facing a serious crisis.’
‘If a solution is not found, Europe’s economy could face significant turbulence, leading to severe employment challenges,’ he said.
He noted that the biggest economic challenge Europe currently faces is determining how to restore its industrial sector to pre-war conditions without experiencing major disruptions.
– Largest nuclear expansion in 30 years
Birol noted that in addition to energy security and clean energy transitions, nuclear power has become a major global focus.
‘With growing concerns over energy security, we are witnessing a strong nuclear revival,’ he explained.
‘Over 60 nuclear power plants are currently under construction worldwide, marking the largest expansion in the sector in 30 years,’ he said.
He added that nuclear power generation is expected to reach a historic peak this year.
During his meetings with Belgian government officials, Birol discussed the country’s changing stance on nuclear energy.
He revealed that Belgium, which had planned to shut down its nuclear plants before the Russia-Ukraine war, is now considering building new ones.
He also mentioned that small modular reactors could become a key topic in nuclear energy starting in 2030.
– Energy cooperation between Türkiye and Europe
Regarding Türkiye’s energy strategy, Birol praised the country’s efforts to secure energy supplies and expand its nuclear projects.
‘Türkiye now sources gas from multiple suppliers, including Turkmenistan, and has made significant strides in renewable energy, particularly in wind and solar power,’ he said.
‘Hopefully, Türkiye will take additional steps in nuclear technology to further expand its energy portfolio,’ he added.
Birol also emphasized that deeper cooperation between Türkiye and Europe in energy could yield substantial benefits.
Highlighting Türkiye’s significant expertise in turbine manufacturing, Birol said, ‘I see strong potential for collaboration between Türkiye and Europe in this field.’
Noting that Türkiye plays a crucial role in delivering gas from Azerbaijan, Turkmenistan, and other suppliers to European markets, Birol said the country is enhancing Europe’s energy diversity and security.
Reporting by Ata Ufuk Seker in Brussels
Writing by Handan Kazanci
Anadolu Agency
