The FINANCIAL -- The International Energy Agency (IEA) has published the latest edition of its annual report ‘Global gas security review 2020’. The report has found that international liquefied natural gas (LNG) has brought a much needed flexibility to gas markets, enabling them to adjust to the sharp drop in demand caused by the COVID-19 crisis.
According to the report, LNG remains central to ensuring the security of global natural gas supplies and has played a major role in the sector’s adjustment to the exceptional drop in global gas demand in the first half of 2020.
Global gas demand is expected to fall this year by 3% – its largest annual drop on record. In this slowdown, LNG continues to play a central role in balancing global gas markets and creating flexibility to adjust to fluctuations in demand.
“Since the IEA started tracking flexibility in LNG markets in the first edition of the ‘Global gas security review’ five years ago, we have seen a notable improvement across a range of LNG market flexibility metrics. This is improving security of supply and was critical in enabling the market to adjust to the historic demand shock witnessed in the first half of 2020,” said IEA Executive Director Dr Fatih Birol.