The International Energy Agency says that Russia’s invasion of Ukraine triggered a significant energy supply crisis, which will slow gas growth in Tuesday’s Gas Market Report.
The influx in prices and deficits in supplies has followed Russia’s invasion of Ukraine, as just prior, costs and supply issues were at a record high. Another consequence of Russia’s actions is the lasting thought that natural gas is no longer viewed as reliable nor economical, leading to a lot of uncertainty in the future.
Between 2021 and 2025, the global gas demand is projected to increase by 140 billion cubic meters; however, Russia’s actions have set back global gas growth for what is estimated to be lasting through the next three years. This lull in the market emphasizes the 370 billion cubic meters increase over the last five-year period and is short of the demand of close to 175 victims in 2021.
Europe’s gas market is set to be reshaped as the European Union aims to become independent from Russian fossil fuels before 2030, as designated under the REPowerEU plan, which was presented in May.
To conclude, the war in Ukraine has led to an overall lack of growth in the gas market and left significant countries and regions looking for alternatives.