IEA chief warns of potential gas “war” between Europe, Asia

Europe and Asia could face competition for liquefied natural gas (LNG) in the coming days if the Middle East crisis continues, International Energy Agency (IEA) head Fatih Birol warned on March 6.

The escalation followed damage to the world’s largest LNG plant in Qatar by an Iranian drone, which caused gas prices to spike. Following the strike, EU gas prices doubled and stabilised at roughly 70% above last week’s levels, according to foreign media.

“If the crisis continues this way, the Asian buyers and the European buyers will need to compete for the LNG, which will get scarcer and scarcer,” Birol said, noting that most gas from the Middle East traditionally flows to Asia, creating additional risks for Europe.

Birol added that the LNG market is expected to remain stable in the long term, as significant new supplies are anticipated in the coming years.

Meanwhile, the EU, having largely severed ties with Russia, now imports nearly half of its gas as LNG, which can be shipped globally.

By Jeyhun Aghazada