5 days Ago By [email protected] (MENAFN)
( MENAFN - Trend News Agency) BAKU, Azerbaijan, October 17. Large expansionis projected in liquefied natural gas (LNG) export capacity fromthe end of 2025 into 2026, Tim Gould, Chief energy Economist,International Energy Agency (IEA), said, as he was addressing theWorld Energy Outlook 2024, Trend reports. “Markets remain relatively tight for the moment, but from theend of next year into 2026, we do see large expansion in LNG exportcapacity, and not all of that LNG finds an immediate home in ourprojections.
That means a reduction in the average utilisation oftoday's LNG export facilities from around 95% today to somethingmuch more like 80% by 2030. That's something of a buffer on thesupply side. And it's not just oil and gas,” he said.
Gould went on to add that there is already a large overhang ofmanufacturing capacity for solar PV modules. “Over the past five years, deployment of solar PV has risen by afactor of four, but manufacturing capacity has risen by a factor ofsix. And we have a similar picture for batteries.
In both cases, wehave this underutilised manufacturing capacity, and that ismaintained all the way through to the end of the decade. So, we'reentering a different energy market context, where we have much moreintense competition for consumers and the potential for downwardpressure on prices,” said the chief energy economist. Further, touching upon the possible impact of the ongoingdevelopments in the Middle East to the energy markets, Gouldpointed out that the Strait of Hormuz is a major maritime chokepoint for energy trade in the Middle East.
“Any disruption in the Middle East that affected those mainexport routes for oil and gas would also limit the effectiveness ofthat safety net, because most of that spare capacity for oil isalso in the Middle East. The major reason for LNG supply increasingis because of Qatar, which also uses the Strait of Hormuz to get tointernational markets,” he added. Follow the author on X: @Lyaman_Zeyn MENAFN17102024000187011040ID1108790350 Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind.
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