The global gas market is going through turmoil due to several factors. According to the recent International Energy Agency (IEA) announcement, this situation will continue even during the following year.
Currently, gas supplies have been tightening in Europe after Russia began shrinking supplies. Moreover, the increased inflation and high prices have led to demand shortages as well. However, increased prices have led global gas consumption to go down by 0.8% this year. According to a report by IEA gas demands in Europe contracted by 10%, additionally the industrial sector also shrank consumption by 15% backed by surging prices.
The global gas market continues to dwindle as Russian shrank supplies to 20%, after which supply was temporarily shut down in August. Now the gas supplies have been disrupted by 4 recent leakages in Nord Stream 1 pipeline.
In addition to this, global gas consumption is forecasted to edge up to 0.4% in the following year.
As a result, Europe has been trying hard to cater to this energy crisis with several alternatives, one of which is the revival of the 2015 nuclear deal between the EU and Tehran. Moreover, it has been importing liquified natural gas (LNG), which is predicted to increase by 60 billion cubic meters within the current year.
At present, the gas storage levels in the EU are at 88% full, however, if Russia cuts off supplies by the 1st of November, gas storage levels in the EU will reach 20% by February, considering the LNG supplies remain strong. But if LNG supplies lose momentum, EU gas storage levels will drop down to 5% full by February.