LNG facilities nearing completion in many countries, especially the US and Qatar, will bring significant gas to markets

The 15th IICEC Conference, organized this year by the Sabancı University Istanbul International Center for Energy and Climate (IICEC) under the theme "Changing Energy Geopolitics, Climate Crisis and Turkey in the World," was held at the Sabancı Center.

In his speech there, Birol said that a slowdown is being observed in the growth of oil demand, which he attributed to developments in China and the rapid growth in demand for electric vehicles.

Stating that a significant increase in oil production is expected this year, particularly in America, Brazil, and Guyana, Birol expressed that a moderate trend in oil prices will be seen in the coming periods.

Birol noted that Europe ending its commercial relationship with Russia regarding natural gas caused less damage than anticipated, stating, "We are entering winter in Europe. Unless there are very major surprises, it looks like Europe will get through this winter without too much damage. Until the Russia-Ukraine War, nearly two-thirds of Europe's gas came from Russia, but in a short time, Europe replaced this through other means."

Drawing attention to the strong LNG production expected in natural gas markets, Birol used the following expressions:

"As of 2025, within 4-5 years, new LNG production never seen before will come to gas markets. LNG facilities nearing completion in many countries, especially the US and Qatar, will bring significant gas to markets. About 50 percent of what has been built in the last 30 years will be added during this period. Currently, seller countries have the upper hand in gas markets, while buyers are in a less powerful position. This will completely reverse. Buyers' hands will be strengthened. Because there will be a very significant amount of gas in the markets. This could lead to the redefinition of some balances both economically and geopolitically."

Birol stated that governments and energy companies that failed to see the development in China over the last 10 years made miscalculations and missed some opportunities, saying, "When we look at the last 10 years, the Chinese economy grew by an average of about 6 percent each year. Two-thirds of the increase in global oil demand in the last 10 years came from China alone. One-third of the growth in global natural gas demand also came from China alone."

Pointing out that the Chinese economy has entered a period of slowdown and its structure has begun to change, Birol said, "It is transitioning from an energy-intensive economy to an economic cycle based on information and clean technologies. This means that demand will fall in China, the number one trigger for global oil and natural gas demand. This will affect many things; it will affect global oil demand, natural gas demand, and developments in coal."

Noting that China is the champion in clean energy technologies by a wide margin, Birol stated, "55 percent of the total clean energy investments made in the world this year came from China alone. The total of new renewable energy power plants built by China this year is equal to the renewable plants built by the entire world last year."

"IICEC continues to bring together the public sector, private sector, and academia"

Sabancı University Founding Chair of the Board of Trustees Güler Sabancı also said that Turkey has strong development potential in energy demand.

Sabancı stated that Turkey has reached the position of being one of Europe's largest and the world's most dynamic energy sectors through the work carried out over the last 20 years, adding, "Important steps are being taken in many areas in energy recently by our Ministry of Energy and Natural Resources and the private sector. For example, we have reached the position of being one of Europe's leading countries in installed renewable energy capacity. Electrification and strong development stand out. Awareness in energy efficiency is increasing, and new business models are developing. We have strong potential to carry these further. As a country, we have important goals regarding energy security, efficiency, competitiveness, and a comprehensive technology-focused energy transition along with the net-zero target."

Expressing that Sabancı University has prioritized energy and climate issues for a long time, Sabancı said, "IICEC continues to bring together the public sector, private sector, and academia toward goals that will support a safer and cleaner energy future, within the model I define as the 'success triangle'."

News Source: 12punto