The International Energy Agency (IEA) has warned that rising gas consumption and geopolitical tensions around the world could complicate gas supplies as winter approaches.

The agency's latest report said the strong growth in gas consumption is being driven by industrial demand, particularly in Asia.

The agency forecasts that global gas demand will increase by more than 2.5% this year to a record 4,200 billion cubic metres, with a further 2.3% growth expected in 2025.

The IEA said that with winter approaching in Europe, one of the key uncertainties is the transit of Russian gas through Ukraine.

Current contracts will expire at the end of 2024, which could lead to the suspension of all Russian gas supplies to Europe via this route, the IEA said, adding that Europe will need to increase its imports of liquefied natural gas (LNG) in the coming year.

This would put additional pressure on global supplies, as LNG is crucial to maintaining the balance between supply and demand.

The IEA said that while the bottlenecks in the Panama Canal and the Red Sea are affecting shipping, they have not yet resulted in a reduction in LNG supply.

However, these problems highlight the vulnerability of LNG trade in an increasingly interconnected global gas market.

The Agency recommended increasing the flexibility of the gas and LNG value chains and stressed the importance of integrating Ukraine's gas storage system into the global market.

Keisuke Sadamori, Director of Energy Markets and Security at the IEA, said that the growing global demand for gas this year and next reflects a gradual recovery from the energy crisis, which had a severe impact on markets.

However, he warned that the balance between supply and demand remains fragile and can be volatile, and stressed the need for close cooperation between producers and consumers.