The International Energy Agency’s second Global Gas Security Review, published October 18, has argued that, while gas markets are currently well supplied, their transformation from regional systems to more globalised and interdependent markets is creating new security challenges.
It provides analysis of recent gas balancing issues and risks with related policy developments linked to security of supply – including the stressed situations in natural gas and power markets experienced by several southern Europe countries in the winter of 2016-2017; diplomatic tensions between Qatar and some of its neighbours; and supply risks posed by recent hurricanes on the US energy system that in future years may extend to Mexico’s too.
The report details how importing countries in mature and well-interconnected markets can still experience unexpected shocks that stress the market. Even in the current low-price environment, suppliers are still exposed to low-probability, high-impact events with potentially serious consequences.
“From cold spells in southern Europe, to hurricanes in the Gulf of Mexico, to diplomatic tensions among Gulf countries, energy security is impossible to ignore,” said IEA executive director Fatih Birol, presenting the review.
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