LONDON (Reuters) - The International Energy Agency (IEA) is set to forecast global supplies of natural gas will rise faster than demand in coming years, the Financial Times newspaper reported on Thursday.
“Global gas markets have evolved from a seller’s market, driven by tight supply and demand, to a buyer’s market as demand weakens while new supply comes onstream,” the IEA says in a draft report of it World Energy Outlook, to be published November 10, according to the FT.
The energy adviser to 28 industrialized countries expects overcapacity of liquefied natural gas terminals and gas pipelines to reach at least 250 billion cubic meters by 2015, over four times the spare capacity in 2007.
“Projected global demand points to significant under utilization of inter-regional pipeline and LNG capacity around the world,” the IEA is reported to say in the draft report.
“This looming glut could have far reaching effects on gas pricing.”
Reporting by David Sheppard; Editing by Carol Bishopric