IEA Projects Large Expansion In LNG Export Capacity From End-2025 Into 2026
Date
10/17/2024 5:01:41 AM
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, October 17. Large expansion
is projected in liquefied natural gas (LNG) export capacity from
the end of 2025 into 2026, Tim Gould, Chief energy Economist,
International Energy Agency (IEA), said, as he was addressing the
World Energy Outlook 2024, Trend reports.
“Markets remain relatively tight for the moment, but from the
end of next year into 2026, we do see large expansion in LNG export
capacity, and not all of that LNG finds an immediate home in our
projections. That means a reduction in the average utilisation of
today's LNG export facilities from around 95% today to something
much more like 80% by 2030. That's something of a buffer on the
supply side. And it's not just oil and gas,” he said.
Gould went on to add that there is already a large overhang of
manufacturing capacity for solar PV modules.
“Over the past five years, deployment of solar PV has risen by a
factor of four, but manufacturing capacity has risen by a factor of
six. And we have a similar picture for batteries. In both cases, we
have this underutilised manufacturing capacity, and that is
maintained all the way through to the end of the decade. So, we're
entering a different energy market context, where we have much more
intense competition for consumers and the potential for downward
pressure on prices,” said the chief energy economist.
Further, touching upon the possible impact of the ongoing
developments in the Middle East to the energy markets, Gould
pointed out that the Strait of Hormuz is a major maritime choke
point for energy trade in the Middle East.
“Any disruption in the Middle East that affected those main
export routes for oil and gas would also limit the effectiveness of
that safety net, because most of that spare capacity for oil is
also in the Middle East. The major reason for LNG supply increasing
is because of Qatar, which also uses the Strait of Hormuz to get to
international markets,” he added.
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