Governments must move faster to strengthen natural gas supply security as geopolitical tensions, tighter interconnections and structural changes leave global gas markets increasingly exposed to sudden disruption and extreme price volatility, the International Energy Agency (IEA) said in a new report.
The report, Gas Reserve Mechanisms and Flexibility Options, sets out a range of measures countries can deploy over the next five years, from physical gas reserves and strategic stockpiles to more flexible LNG contracts and emergency policy mechanisms.
The warning comes after two major gas supply crises in the past five years exposed vulnerabilities in global markets.
Russia’s full-scale invasion of Ukraine in 2022 and the subsequent sharp decline in Russian pipeline gas supplies to Europe sent gas prices to record levels and triggered a major reshaping of global LNG trade. More recently, disruptions to LNG flows through the Strait of Hormuz during the 2026 Middle East conflict again highlighted the risks facing economies heavily dependent on imported gas.
The crises demonstrated the limits of relying on markets alone during extreme supply shocks. Competition for scarce LNG cargoes can drive prices sharply higher and inflict significant economic damage — while in some circumstances still failing to prevent physical shortages.
The IEA says investments in supply resilience should be viewed much like insurance: they carry upfront costs, but those costs can be far lower than the economic consequences of being caught unprepared.
Physical gas reserves remain a key pillar of supply security, the report finds. These can include underground storage, LNG tanks and floating storage. But storage capacity and effectiveness vary widely between countries, while building new facilities can be costly and take years.
That makes commercial flexibility increasingly important.
More flexible LNG contracts, new commercial arrangements and wider use of LNG cargo swaps could help move available supplies more efficiently between markets when disruptions occur. Such measures could strengthen resilience and limit price volatility without requiring major new infrastructure.
Governments also have a range of policy tools at their disposal, including mandatory storage requirements, strategic gas reserves and buffer LNG schemes.
The IEA highlights several options for further consideration, including joint strategic reserves that use existing infrastructure, cross-border stockholding arrangements, cross-regional LNG buffers and mechanisms that pool LNG call options to provide emergency supply backstops.
There is no one-size-fits-all solution, however. The right approach will depend on a country’s geography, infrastructure, level of import dependence, market structure and existing storage capacity.
Greater international cooperation could nevertheless help governments make better use of existing assets and strengthen their collective ability to respond when supplies are suddenly disrupted.
The IEA is calling on governments to deepen dialogue on gas security, improve transparency around reserves and market conditions, conduct regular emergency exercises and work together to increase LNG market flexibility.
It also recommends further examination of voluntary international reserve arrangements, drawing on lessons from the IEA’s longstanding oil security framework.
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