--- title: "Global gas supply tightness expected to persist until next summer" publisher: "Stockmark.IT" author: "Stockmark.IT Website" published: "2026-09-27T08:28:18+00:00" modified: "2026-09-27T08:28:18+00:00" date: 2026-09-27 canonical: "https://stockmark.it/global-gas-squeeze-could-last-through-next-summer/" category: "Gas" categories: ["Gas", "global markets"] image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/global-gas-supply-tightness-expected-to-persist-until-next.png?fit=1536%2C1024&quality=80&ssl=1" format: "news" language: "en-GB" --- # Global gas supply tightness expected to persist until next summer **Published:** September 27, 2026 **Author:** Stockmark.IT Website **Categories:** Gas, global markets **Featured image:** ![Global gas supply tightness expected to persist until next summer](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/global-gas-supply-tightness-expected-to-persist-until-next.png?fit=1536%2C1024&quality=80&ssl=1) --- Global natural gas supply is projected to remain constrained until at least the following summer, a development that could lead to prolonged demand destruction. This sustained tightness poses a significant risk to Europe, which is currently facing difficulties in securing sufficient gas to cover its winter needs ahead of the official start of the heating season. Asia is also expected to be adversely affected by the ongoing market pressures. The assessment comes from the International Gas Union, an industry association representing 90 per cent of the world’s gas producers. Menelaos Ydreos, the secretary general of the IGU, stated that market participants anticipate the current conflict will be prolonged. He noted that Europe is beginning to outbid Asia for supplies as it seeks to refill storage levels, adding that the recent surge in natural gas prices has already destroyed some demand. However, it remains unclear whether this reduction in consumption is a temporary dip or the beginning of permanent demand destruction. Evidence suggests that the demand destruction may be short-term in nature. A recent report by Global Energy Monitor indicated that countries in Southeast Asia continued to build natural gas-fired power plants despite the price inflation caused by the Middle East war. Furthermore, Asian nations are expanding their liquefied natural gas import capacity despite the price surge. Ydreos acknowledged the short-term impact on demand but raised questions about whether consumption would rebound once the situation stabilises or if there would be longer-term policy implications. This concern reflects a legitimate worry within the gas industry regarding the future outlook for demand. Goldman Sachs has presented a more optimistic scenario for the immediate winter period. In a report published this week, the investment bank suggested that European gas prices could fall from around 70 euros per megawatt hour to 50 euros per megawatt hour if the flow of liquefied natural gas out of the Persian Gulf improves. However, the bank’s analysts still expect European gas prices to average 70 euros per megawatt hour, equivalent to approximately 80 dollars. This forecast is significantly higher than an earlier prediction in which Goldman Sachs commodity analysts expected winter gas prices to range between 30 and 60 euros per megawatt hour. Samantha Dart, the co-head of Global Commodities Research at the bank, explained that exports of liquefied natural gas from the Persian Gulf are currently estimated to be only 15 per cent to 25 per cent of their levels from before the outbreak of war between Iran, the United States and Israel in February 2026. In the absence of an improvement in exports through the Strait of Hormuz, European gas prices must increase to outcompete importers elsewhere in the world. She added that if other buyers stop purchasing, more supply would be available for Europe. Despite the potential for increased gas supplies to fill storage caverns, power generators in Europe are switching to coal, indicating that gas is becoming difficult to afford for one of the world’s largest import regions. Reuters reported that coal consumption by power utilities in Europe could rise by as much as 25 per cent over the next six months. This shift occurs as gas prices surge to their highest levels in three years, hitting 80 euros per megawatt hour this month. According to data from EnergyRiskIQ, European benchmark gas prices have added more than 17 per cent over the 30 days to September 24. Asian gas importers may find some relief as more Russian liquefied natural gas becomes available. The European Union approved a ban on Russian liquefied natural gas imports earlier this year, which is set to take effect from January. This measure means flows from Yamal LNG will be redirected, and Ydreos suggested these could be sold at a discount. While this would tighten the supply base for Europe, EU leadership has repeatedly stated that geopolitical priorities come first, and the bloc is prepared to bear the cost of pursuing them. However, this stance conflicts with the EU’s climate change agenda. Ydreos emphasised that regulations must be achievable, practical and incentivise compliance. He warned that if regulations make it extremely difficult for the industry to comply, companies will look for other regions to send their product. This comment possibly refers to the EU’s methane regulation, which has prompted strong reactions from both Qatar and the United States. The two biggest liquefied natural gas suppliers to the EU have repeatedly stated they would not comply with the regulation requiring the tracking of every gas molecule to ensure it was produced with care for emissions. With Qatar temporarily off the stage, the United States remains Europe’s primary hope for liquefied natural gas supply, regardless of the cost, including potential adjustments to climate regulation. --- **Original URL:** https://stockmark.it/global-gas-squeeze-could-last-through-next-summer/ *Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*