Baku: The International Energy Agency (IEA) has projected a significant increase in the global supply of liquefied natural gas (LNG) and oil, starting from 2026. This prediction was made by IEA’s Executive Director, Fatih Birol, during the unveiling of the World Energy Outlook 2024.

According to Trend News Agency, Birol discussed the evolving dynamics of the energy markets at the event. He described the upcoming period as entering a “new market context” which will be characterized by an easing of fundamentals in the oil and gas sectors. Birol explained that developments in energy supply, particularly in natural gas and oil, are key drivers of this change. He predicted a substantial rise in LNG supply, primarily from expansions in Qatar and the United States, which he said would double the current global LNG capacity.

The IEA Executive Director also highlighted significant upcoming oil projects in the “American quartet” – the United States, Canada, Brazil, and Guyana – which are expected to collectively add
a considerable volume of new oil to the global market. This surge in supply is anticipated to coincide with a weaker demand and a robust move towards cleaner energy alternatives.

Birol outlined the potential implications of these developments. He noted that an increase in energy supply would enhance energy security and potentially lower energy prices, benefiting many importing countries. However, he also warned of increased competition for clean energy solutions, which would have to contend with cheaper fossil fuel options.

The IEA’s forecasts indicate that stakeholders in the energy sector need to closely monitor these shifts and prepare for a future that may challenge the current momentum towards renewable energy due to an abundance of cheaper oil and gas.