Governments should take practical steps to strengthen natural gas supply security as global markets become increasingly interconnected, volatile and vulnerable to geopolitical disruptions, according to a new report from the International Energy Agency (IEA).

The report, Gas Reserve Mechanisms and Flexibility Options, outlines a range of measures countries can adopt over the next five years, alongside longer-term efforts to diversify supply sources and expand infrastructure. 

It examines physical reserves, commercial flexibility and government-led mechanisms that can help protect economies from sudden gas supply shocks.

The analysis follows two major disruptions in the past five years that exposed weaknesses in the global gas system.

The sharp decline in Russian pipeline gas supplies to Europe after Russia’s full-scale invasion of Ukraine in 2022 sent gas prices to record levels and dramatically reshaped global LNG trade.

More recently, disruptions to LNG flows through the Strait of Hormuz during the 2026 Middle East conflict again highlighted the vulnerability of economies that rely heavily on imported gas.

The IEA said these crises demonstrated that competition for limited LNG cargoes during periods of severe stress can trigger extreme price volatility and impose significant economic costs.

In some circumstances, competition between buyers may also fail to prevent physical shortages.

The report argues that investing in supply resilience should be viewed much like insurance. Although reserve capacity and other preparedness measures involve upfront costs, the economic consequences of being unprepared for a major disruption can be considerably greater.

Physical gas reserves remain a central component of supply security, according to the IEA.

These can include underground storage, LNG storage tanks and floating storage facilities.

However, storage capacity varies widely between countries, while new facilities can be costly and take years to develop.

Greater commercial flexibility can provide an important complement. More flexible LNG contracts, innovative commercial arrangements and increased use of LNG cargo swaps could help supplies move more efficiently between markets during emergencies.

Such measures could strengthen resilience and reduce price volatility without requiring major new infrastructure.

The IEA also highlights policy-based mechanisms including mandatory storage requirements, strategic gas reserves and buffer LNG schemes.

Potential approaches include joint strategic reserves using existing facilities, cross-border stockholding arrangements, regional LNG buffers and systems that pool LNG call options to provide emergency supplies.

The agency stresses that there is no universal model for gas security.

The most effective approach will depend on factors including geography, infrastructure, import dependence, market structures and existing storage capacity.

International cooperation, however, could allow countries to use existing infrastructure more efficiently while improving their collective ability to respond to disruptions.

The IEA recommends deeper government dialogue on gas security, greater transparency on reserves and market conditions, regular emergency exercises and stronger cooperation to improve LNG market flexibility.

It also calls for further consideration of voluntary international reserve arrangements, drawing lessons from the IEA’s established oil security system. -OGN/TradeArabia News Service