The Secretary General of the International Gas Union Calls for Immediate Action as the Global Energy System Faces Escalating Disruptions

The Secretary General of the International Gas Union Calls for Immediate Action as the Global Energy System Faces Escalating Disruptions

Over the past 30 years, the Strait of Hormuz has become a crucial artery for transporting commodities essential to the global economy and people's well-being. Beyond the obvious transportation of crude oil and liquefied natural gas, about 30% of the world's traded fertilisers, particularly nitrogen-based, significant quantities of petrochemical feedstocks used in pharmaceuticals and everyday products, liquefied petroleum gas, and sulphur all pass through the Strait. On an average day, between 100 and 130 ships traverse the route.

But as its importance has grown over time, the critical nature of this artery has also become clearer. Perhaps we were all complacent, much as Europe assumed that Russian natural gas supplies would always be available or, perhaps, not desirable to the European market, that the Strait would not create a massive supply chain disruption.

There is no single global Gas[1] - price regime in the present crisis. Rather, several regional stress regimes now coexist within a single, increasingly interconnected Gas market. Europe is, above all, a storage-and-refill market. Northeast Asia is a replacement-cargo and power-security market. South Asia is an affordability-and-curtailment market. Africa is a monetisation-and-domestic-prioritisation market. North America remains a domestic-balance market with an export floor. Latin America is an indirect Atlantic-basin competition market. The Gulf is a deliverability-and-restart market.

Menelaos (Mel) Ydreos, the Secretary General of the International Gas Union states: "The security of supply was largely neglected due to ideological policies that hindered investment in the very infrastructure that could have considerably reduced the far-reaching effects of the Strait's closure."

There is plenty of natural gas available. There is plenty of LNG available. What we are all witnessing today is not an availability crisis, but a supply crisis brought on by geopolitical prerogatives, one where energy itself is the prize.

As an example, in 2015, around 34% of global LNG exports were produced west of the Strait of Hormuz (Qatar and UAE). Globally, there were only 17 LNG exporting countries, and 244 million tonnes of LNG were exported in total (according to IGU's data).

By 2024, 20% of global LNG exports were produced west of the Strait of Hormuz, down from almost 40% in 2015. In 2024 there were 22 exporting countries (that number has now risen to 25 with Canada as, in 2025, Canada became the 25th LNG major exporter with the commissioning of LNG Canada) and, globally, the quantity of LNG exported has almost doubled, reaching 411 million tonnes of LNG in 2024 (according to IGU's data) and almost 440 million tonnes in 2025 (according to International Energy Agency data).

Despite its growth, LNG currently meets just 4% of the total global Gas demand.

Continued investments in energy infrastructure - including LNG - and a diverse energy supply are critically needed to mitigate market shocks such as the one we are currently experiencing. According to the IEA, 90% of annual upstream investment in oil and Gas is spent offsetting declines from existing fields[2]. To close the gap with new, emerging energy demand, targeted and sustained investment in Gas is essential, not as a substitute for renewables, but as a strategic complement to them.

This investment includes sufficient investment in Gas storage capacity. In the IGU's recent Underground Gas Storage Report[3], it was noted that - in developed markets - underground Gas storage appears to be stagnating. This must change, as storage is critical to helping energy markets navigate seasonal shifts, absorb short-term shocks, and ensure reliable, timely delivery to consumers.

Government policies - however well-intentioned - must not create further uncertainty and energy insecurity by deterring investment in Gas supply and infrastructure. Closer co-operation between government and industry is necessary to ensure that regulatory actions - such as the EU's Methane Regulations[4], for instance - are aligned with industry realities and do not hinder countries' ongoing efforts to achieve energy security through diversification.

We, again, call for an immediate stop to the targeting of energy facilities and for the resumption of cargo traffic through the Strait of Hormuz as fertilisers, petrochemicals for the pharmaceutical industry, oil, grain, and Gas are all critical to our existence.

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1. In the terminology of the International Gas Union, "Gas" encompasses all of its forms: natural, liquefied and low-emission such as biomethane, hydrogen and e-methane.

2. World Energy Investment 2025 - Analysis - IEA

3. Underground Gas Storage 2025 | International Gas Union

4. Open Letter to the European Commission on the Key Challenges for the Methane Regulation legislation | International Gas Union

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ABOUT THE IGU:

The International Gas Union (IGU) is the spokesperson of the global Gas industry, with members in over 70 countries across the globe, covering over 90% of the global Gas market across every segment of the value chain, from the supply of natural and decarbonised gas, renewable gas and hydrogen, through to their transmission and distribution, and all the way to the point of use.

IGU presents the world's leading international Gas events, including the International Gas Research Conference (IGRC2027) series, the World Gas Conference (WGC2028) and the International Conference and Exhibition on Liquefied Natural Gas (LNG2029).

The IGU also publishes the global Gas industry's annual flagship reports: Wholesale Gas Price Survey, World LNG Report, and the Global Gas Report, as well as various special reports, such as The Role of Gas in Powering AI-Driven Energy Demand, Gas for Africa, Introduction to Low Carbon Gas Technologies and The Role of Gas for East Mediterranean Economies and the Path to the Energy Transition. IGU has also released its Manifesto, and is the publisher of the global Gas industry's flagship magazine, Gas in Transition.

The IGU was established in 1931, is a not-for-profit membership organisation registered in Vevey, Switzerland, with its Secretariat based in London, United Kingdom.