Tightening markets for liquefied natural gas (LNG) worldwide and major oil producers cutting supply have put the world in the middle of "the first truly global energy crisis," Faith Birol, the head of the International Energy Agency (IEA), said on Tuesday.

Rising imports of LNG to Europe amid the Ukraine conflict and a potential rebound in China's need for the fuel will tighten the market as only 20 billion cubic meters of new LNG capacity will come to market next year, Birol said during the 15th Singapore International Energy Week.

The recent decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, to cut 2 million barrels per day (bpd) of output is a "risky" decision as the IEA sees global oil demand growth of close to 2 million bpd this year, he said. 

For oil, consumption is expected to grow by 1.7 million bpd in 2023 so the world will still need Russian oil to meet demand, he said.

However, the energy crisis could be a turning point for accelerating clean sources and for forming a sustainable and secured energy system, Birol said. 

"Energy security is the number one driver (of the energy transition)," said Birol, as countries see energy technologies and renewables as a solution. 

The IEA has revised up the forecast of renewable power capacity growth in 2022 to a 20 percent year-on-year increase from 8 percent previously, with close to 400 gigawatts of renewable capacity being added this year. 

Many countries in Europe and elsewhere are accelerating the installation of renewable capacity by cutting the permitting and licensing processes to replace the Russian gas, Birol said.

(With input from Reuters)