“Gas-fired power generation is expected to decline amid the strong expansion of renewables, while high gas prices continue to weigh on its competitiveness vis-a-vis coal-fired generation,” the IEA said.
A return to average weather conditions after an unusually cold spring in 2021 should also lower heating demand in Europe, which accounts for about 13% of global gas consumption, the agency said.
Future supply remains a concern. After record outages at liquefied natural gas projects last year, new delays “could further limit supply availability in the next few years,” the IEA said.
“Delays are especially pronounced for projects that were initially targeting full capacity by 2024, including LNG Canada, Mozambique LNG and Golden Pass in the United States,” the IEA said.
Still, post-pandemic demand recovery meant global gas trade grew by a record last year, with pipeline gas flows surging 12% and LNG trade expanding by 6%.
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