Gas Market Report, Q1-2023
Including Gas Market Highlights 2022
IEA (2023), Gas Market Report, Q1-2023, IEA, Paris https://www.iea.org/reports/gas-market-report-q1-2023, License: CC BY 4.0
The global natural gas market suffered a major shock in 2022 as Russia cut pipeline deliveries to Europe substantially, placing unprecedented pressure on supply and triggering a global energy crisis. Despite this, European countries were able to fill their underground gas storage sites well above historical averages, supported by a combination of targeted policy measures, a record inflow of liquefied natural gas (LNG) and a steep drop in consumption, particularly in energy-intensive industries. Russia’s pipeline cuts also had implications for gas consuming regions beyond Europe, leading to record high spot prices, supply tensions and considerable demand reduction.
Unseasonably mild winter weather in the northern hemisphere, combined with sustained LNG inflows and adequate gas storage inventories put downward pressure on European and Asian spot prices. Nevertheless, the global gas balance is fragile and a number of uncertainties in 2023 exist. Gas importing markets remain exposed to a tight supply environment and the impact of further cuts from Russia are cause for concern. Since the crisis began, governments in Europe and other importing markets have taken strong policy measures to increase their energy resilience and reduce dependence on natural gas.
This new issue of the quarterly Gas Market Report includes an overview of the main market highlights for 2022, and an analysis of recent gas market developments with a forecast for 2023.