Global LNG boom to benefit Türkiye, Europe, Asia: IEA chief
BRUSSELS
New liquefied natural gas (LNG) capacities set to come online next year will provide significant advantages for gas-importing nations, including Türkiye, European countries, India and Japan, according to the head of the International Energy Agency (IEA).
The surge in global LNG supply, expected to begin in 2026 and continue over the following three years, will bring positive developments for Europe, IEA chief Fatih Birol told state-run Anadolu Agency following discussions in Brussels, where he met with Belgium's King Philippe, European Council President Antonio Costa, and NATO Secretary-General Mark Rutte.
Highlighting that several LNG projects launched six to seven years ago in the U.S. and Qatar are nearing completion, Birol stated: "A massive wave of LNG supply will soon hit the markets, which will help lower gas prices."
This shift is particularly significant for gas-importing nations such as Europe and Türkiye as the market transitions from being seller-dominated to favoring buyers, thereby strengthening the bargaining position of importing countries, 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 percent last year, marking the slowest increase in four years at just 10 billion cubic meters (bcm).
However, LNG production is expected to rise by 6 percent this year, adding another 30 bcm, driven by several major projects coming online in North America.
Birol noted that natural gas prices in Europe have remained high, particularly due to cold weather conditions, and emphasized that the continent has yet to resolve its gas supply challenges.
"On average, natural gas prices in Europe are five times higher than in the U.S., while electricity prices are four times those in China," he said.
The high cost of energy is eroding Europe's competitive edge in global trade, he warned. "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.
Discussing Türkiye’s energy strategy, Birol commended the country’s efforts to diversify energy sources and expand its nuclear projects.
"Türkiye now sources gas from multiple suppliers, including Turkmenistan, and has made significant progress in renewable energy, particularly in wind and solar power," he said.
"Hopefully, Türkiye will take further steps in nuclear technology to broaden its energy portfolio," he added.
Birol also emphasized the potential for deeper energy cooperation between Türkiye and Europe, which could yield substantial benefits.
Pointing to Türkiye’s expertise in turbine manufacturing, Birol noted, "I see strong potential for collaboration between Türkiye and Europe in this field."
Türkiye also plays a crucial role in transporting gas from Azerbaijan, Turkmenistan, and other suppliers to European markets, enhancing Europe’s energy diversity and security, he said.
