UEA President Birol: The Power of Buyers in Natural Gas Has Increased

Fatih Birol Emphasizes Energy Security

The President of the International Energy Agency (IEA), Fatih Birol, stated that global political and economic developments are affecting energy security at the conference themed "The Present and Future of Energy Security in the World and Turkey: Risks and Solutions in Critical Minerals," organized by the Sabancı University Istanbul International Center for Energy and Climate (IICEC).

Changes in the Oil and Natural Gas Market

Birol pointed out that in the coming years, not only producer countries but also new players will enter the markets, leading to an overall increase in capacity. "I predict that oil demand will continue to rise between 2030 and 2040. However, this will depend on the electrification level in the transportation sector," he said.

He also emphasized that the natural gas sector will experience a significant increase in liquefied natural gas (LNG) volumes this year and next year. Birol stated, "All of the gas that has come in the last 40 years will reach the markets in just 5 years. This will significantly lower natural gas prices. The natural gas market will now develop in favor of buyers," he expressed.

Open Developments in the Electricity Sector

Birol noted that there has been significant change in the electricity sector, highlighting that the increase in artificial intelligence and electric vehicle usage has contributed to rising demand. He also emphasized the growing competition in countries' investments in electricity infrastructure.

Return of Nuclear Energy

Birol stated that Japan's dependence on energy has increased after a significant portion of its nuclear plants went offline. Moreover, the upcoming special nuclear energy meeting in Davos indicates that nuclear energy is regaining importance. He expressed satisfaction with Turkey's determination regarding nuclear energy.

Critical Minerals and Future Risks

Emphasizing the importance of critical minerals in energy transition, Birol remarked, "Awareness should be raised about the value in refining capacity, not just the extraction of the mineral. In the future, disruptions in this area could be critical for both trade and energy security," he said.

Turkey's Energy Strategy

The founding Chair of Sabancı University’s Board of Trustees, Güler Sabancı, highlighted the growth dynamics of Turkey’s energy sector, stating that they aim to rank among the top five in renewable energy in Europe. She also emphasized that the work conducted on critical energy minerals has been carried out through collaboration between public, private sector, and academia.