ROME, January 26. /TASS/. Natural gas markets are expected to return to growth in 2024, although the expansion of gas use will be capped in import markets by the limited increase in global LNG supply, according to Gas Market Report by the International Energy Agency (IEA) presented by the agency’s analyst Gergely Molnar.

Following the gas supply shock of 2022, natural gas markets moved towards a gradual rebalancing in 2023 "due to timely policy action, market forces and favorable weather conditions," the report said. "Gas prices decreased significantly compared with their 2022 highs but remain well above their historical averages in Asia and Europe," the agency noted.

"Despite this gradual rebalancing, the market remained tight on the supply side as the increase in global LNG production was not enough to offset the continued decline in Russian piped gas deliveries to Europe. LNG production growth fell short of previous expectations due to a combination of project delays and feedgas supply issues. Prices continued to display high volatility," according to the report. The volume of Russian gas flowing to Europe via pipelines did not exceed 10% in 2023, with LNG accounting for 37%, Molnar said.

As gas demand declines in Europe, the demand for it in Africa and, most notably, in China will be rising, the analyst said. Amid persisting risks of falling global LNG supplies, particularly due to mounting tensions on the key transport routes, the interest in new suppliers is expected to grow in African and Middle Eastern countries.