Ankara: Governments should strengthen natural gas reserves and increase the flexibility of liquefied natural gas (LNG) markets to protect consumers against supply disruptions, the International Energy Agency (IEA) said on Wednesday.
According to Anadolu Agency, in its report, Gas Reserve Mechanisms and Flexibility Options, the agency outlined measures countries could implement over the next five years as gas markets become more interconnected but increasingly vulnerable to geopolitical shocks. The proposals include mandatory commercial storage obligations, government-controlled strategic reserves, LNG buffer stocks, joint reserves using existing infrastructure and cross-border stockholding arrangements.
The IEA also recommended examining pooled LNG purchase options and agreements allowing countries to access additional cargoes during emergencies. The report follows two major gas-supply crises in five years. Reduced Russian pipeline deliveries to Europe after the start of the Ukraine war in 2022 caused record prices and reshaped global LNG trade. More recently, disruption to LNG shipments through the Strait of Hormuz due to the ongoing Iran war highlighted the vulnerability of import-dependent economies.
The IEA warned that competition for limited LNG cargoes during severe disruptions could cause extreme price volatility and significant economic damage without necessarily preventing physical shortages. It said physical reserves, including underground storage, LNG tanks and floating storage, remained central to gas security. However, storage alone cannot address every disruption because countries differ in geography, infrastructure and import dependence.
More flexible LNG contracts, cargo swaps and commercial innovation could complement reserves by allowing available supplies to move more efficiently between markets, it added. The recommendations are particularly relevant for Trkiye, which has expanded its underground storage and LNG import infrastructure while maintaining pipeline supplies from several countries.
Gas security will also be discussed at the LNG Producer-Consumer Conference, co-hosted by Japan's Economy Ministry and the IEA on Friday.