Russian gas flows to Europe likely to fall 40% this year, says IEA

The International Energy Agency (IEA) sees gas flows to Europe through Russian pipelines to fall 40% in 2022, with LNG imports rising, expecting fuel demand in Europe to drop 9% this year to come in below 2020 levels.

In its quarterly market report, the agency forecasts weak global demand for natural gas over the next three years, coupled with the negative impact of higher prices and the threat of further cuts in Russian supplies on consumption.

Gas consumption, according to IEA, could shed 0.5% this year, with the impact of lower economic activity in Asia or a sharp decline in European demand for gas overshadowing the more prosperous markets in North America.

“Today's record prices and supply disruptions are damaging the reputation of natural gas as a reliable and affordable energy source,” the agency wrote, Bloomberg reported.