Governments have opportunities to strengthen natural gas security after series of supply shocks

Governments have options available to strengthen resilience and preparedness for potential natural gas supply disruptions in the future as geopolitical risks and structural changes make global gas markets increasingly complex and susceptible to volatility, according to a new IEA report released today.

The report, Gas Reserve Mechanisms and Flexibility Options, examines how countries can improve gas supply security through a combination of physical reserves, more flexible commercial arrangements and policy mechanisms. It identifies measures that governments can implement over the next five years, alongside longer-term efforts to diversify supplies and strengthen infrastructure.

The report comes after two major gas supply crises in the past five years that challenged longstanding assumptions about the resilience of global gas markets. The sharp reduction in Russian pipeline gas supplies to Europe following Russia’s full-scale invasion of Ukraine in 2022 triggered record prices and a major reconfiguration of global LNG trade. More recently, disruptions to LNG flows through the Strait of Hormuz during the 2026 Middle East conflict once again demonstrated the vulnerability of import-dependent economies to sudden supply shocks.

These crises showed that the reallocation of LNG supplies through competition for limited LNG cargoes during periods of acute stress can lead to extreme price volatility and significant economic impacts, and, in some circumstances, may not prevent physical shortages. The new report’s analysis highlights that measures to strengthen gas supply security ahead of such shocks have upfront costs – similar to insurance – but that the economic cost of being unprepared can be significantly higher than the cost of investing in resilience.

The report finds that physical gas reserves remain a cornerstone of supply security and can take the form of underground gas storage, LNG tanks and floating storage. At the same time, it notes that storage alone cannot address all potential disruptions, and the availability and effectiveness of storage options vary considerably among different countries and regions. Moreover, new storage infrastructure can be expensive and take years to develop.

Greater commercial flexibility can therefore play an important complementary role. More flexible LNG contracts, commercial innovation and wider use of LNG cargo swaps could allow available supplies to move more efficiently between markets during disruptions, strengthening resilience and helping to moderate price volatility without requiring major new infrastructure.

The report also examines existing policy-based reserve mechanisms that governments can deploy according to their individual circumstances, including mandatory storage obligations, strategic gas reserves and buffer LNG schemes. Among the options identified for further consideration are joint strategic reserves using existing infrastructure, cross-border stockholding arrangements, cross-regional LNG buffers and mechanisms that pool LNG call options to provide a backstop during emergencies.

There is no single model that will work for every country, the report highlights. Appropriate arrangements will depend on factors including geography, infrastructure, import dependence, market design and existing storage capacity. But greater international cooperation could allow countries to make more efficient use of existing assets while strengthening their collective ability to respond to disruptions.

The report recommends that governments deepen dialogue on gas security, improve transparency around reserves and market conditions, conduct regular emergency exercises and work together to enhance LNG market flexibility. It also proposes further examination of voluntary international reserve arrangements, drawing on relevant lessons from the IEA’s longstanding oil security framework.

The report’s publication comes ahead of the LNG Producer-Consumer Conference on 11 September – co‑hosted by the Japan’s Ministry of Economy, Trade and Industry and the IEA – where strengthening gas and LNG supply security will be a major focus of discussions.