Baku: The International Energy Agency anticipates a major increase in liquefied natural gas (LNG) export capacity starting from the end of 2025 into 2026, according to Tim Gould, Chief Energy Economist at the IEA, who spoke at the World Energy Outlook 2024 event. This growth could lead to a decrease in the average utilization of current LNG export facilities.

According to Trend News Agency, Gould highlighted that while the market remains tight currently, the projected expansion in LNG export capacity could result in its underutilization. He noted that the utilization might decrease from about 95% today to approximately 80% by 2030. Gould also mentioned that this expansion is part of a broader shift in the energy market, which includes significant increases in manufacturing capacities for solar photovoltaic (PV) modules and batteries, despite their current underutilization.

Further detailing the energy market dynamics, Gould explained that the manufacturing capacity for solar PV modules has risen sixfold ove
r the past five years, outpacing the fourfold increase in their deployment. A similar pattern is observed in battery manufacturing. These trends indicate a shift towards more intense competition in the energy sector, potentially leading to lower prices for consumers.

Additionally, Gould addressed potential risks in the energy market stemming from geopolitical tensions in the Middle East. He pointed out the strategic importance of the Strait of Hormuz, a critical maritime passage for the global oil and gas trade. Any disruptions in this region could significantly impact the global energy supply chain, particularly affecting the newly increased capacities for LNG exports that rely on these routes.