Paris: In its latest quarterly report, the IEA stated that the conflict could wipe out nearly 15 per cent of expected global LNG supply over the next five years. The projected losses are largely attributed to interruptions in supply flows and a slowdown in the expansion of production capacity.
The agency highlighted that halted shipping activity in the region has already begun to impact the global energy market. LNG supply growth has stalled, with production declining by approximately 10 billion cubic meters in just one month. Losses are expected to climb to nearly 20 billion cubic meters during March and April alone.
According to the report, each month of disrupted shipments could result in a loss of nearly 10 billion cubic meters of global LNG supply, underscoring the scale of the crisis.
While the IEA noted that the eventual commissioning of new liquefaction facilities may help offset some of the losses in the long term, the most severe impact is anticipated in the immediate period—particularly this year and the next.
The agency also warned that any damage to existing gas infrastructure or delays in expansion projects could further strain production levels through to 2030.