IEA prepares a new program for LPG supply security

In his speech at the Liquid Gas Week Program organized by the World Liquid Gas Association (WLGA) at the Istanbul Congress Center, Fatih Birol, President of the International Energy Agency (IEA), said that no energy-related issue can be addressed independently of the energy crisis the world is in.

"We are facing the greatest energy security threat in history," he stated right after the start of the US/Israel-Iran War. Recalling his words, Birol said, "Almost 8 months have passed since the start of the war, and we see its effects more clearly every day. Not only in the oil and natural gas markets, but also in the fertilizer and other sectors." he said.

Birol stated that the attention in the oil markets is focused on the course of crude oil prices slightly above 100 dollars, and said, "However, no one uses crude oil. People use LPG, diesel or gasoline. Diesel prices today are twice the level before the war started." he said.

Stating that diesel, which is a very important part of the economy, is used in transportation, electricity production, industry and agriculture, Birol continued as follows:

"The developments in the Middle East, as well as the damage to many Russian refineries, mean that we are facing unprecedented challenges in the diesel markets. The situation is very serious. As we enter the winter season, there is usually an increase in diesel demand and many refineries switch to maintenance programs. This is the main reason why I recently met with the heads of state of the G7 countries. As the International Energy Agency, we are doing our best to stabilize the diesel markets. We have already taken some steps. We will continue these efforts and, if necessary, take additional steps in the same direction."

Regarding the LPG issue, Birol said, "LPG is also affected by the crisis. More than one third of the LPG trade passes through the Strait of Hormuz, mainly towards Asia. We observe some congestion in the LPG markets. As of today, LPG prices worldwide are 60 percent higher on average compared to pre-war levels." shared his knowledge.

Pointing out that this activity in the LPG sector directly affects households, Birol said:

"Just over 50 percent of LPG is used in homes for cooking and heating purposes. The rest is used in the petrochemical and industrial sectors. Therefore, the current energy crisis directly affects households. That is why we are developing a new program in cooperation with the energy sector. We have a huge mechanism for oil stocks in the IEA. When there is a serious problem or disruption in the market, we release these stocks to the market. We also discussed with many governments and industry representatives whether we should develop an LPG safety mechanism." We're seeing you."

Birol stated that great support was given to the clean cooking safety program and said that the easiest solution for clean cooking is LPG.