The global liquefied natural gas (LNG) market is facing delays in new projects that could prolong the global energy crisis. Bloomberg reports this with reference to data from the International Energy Agency (IEA) and the research firm Wood Mackenzie, Day.Az reports with reference to Gazeta.ru.
Despite investments of more than $200 billion, the expected LNG surplus by 2025 is delayed. The IEA lowered its forecast for LNG production growth in 2025 to 580 billion cubic meters from the previously expected 600 billion.
Wood Mackenzie also cut its estimate of additional supplies by 16% compared to estimates six months ago.
“The delays have made the expected fall in prices less pronounced than at the beginning of the year,” said company analyst Lukas Schmitt.
Reasons for the delays include extended construction of liquefaction plants in Texas and Mexico, as well as Western sanctions holding back Russia’s Arctic LNG 2 project.
At the same time, global demand for LNG is growing. Egypt has become a net importer this year due to production problems and a hot summer. McKinsey & Co. predicts that by 2030, energy requirements for artificial intelligence-related data centers will account for 5% of Europe’s energy consumption.
“We haven’t seen much growth in LNG supply, but demand is growing,” Mark Simons, head of gas and electricity at TotalEnergies, said at a conference in London.