Paris, April 24 (QNA) - The International Energy Agency (IEA) warned that the impact of military escalation in the Middle East on liquefied natural gas (LNG) production could last for at least two years, noting that the market is expected to remain “tight” throughout 2026 and 2027.

In a report issued on Friday, the agency said damage to some LNG liquefaction infrastructure is likely to delay the effect of global expansion in LNG production by at least two years, despite the continued implementation of new projects aimed at partially offsetting the shortfall later on.

The agency, founded in 1974 following the oil crisis to strengthen global energy security, projected that the combined impact of short-term supply losses and slower growth in production capacity could result in a cumulative shortfall of around 120 billion cubic meters of LNG between 2026 and 2030.

It called for strengthening global LNG supply security through investment across the entire value chain, enhancing international cooperation between producers and consumers, and encouraging importing countries to diversify long-term contracts to reduce exposure to price volatility.

The escalation in the Middle East caused significant disruption in the market, including the effective closure of the vital Strait of Hormuz to LNG carriers transporting liquefied natural gas. (QNA)