Outlook 2024: Market regime shifts driving LNG portfolio value
Three main characteristics underpin a shift in global pricing dynamics creating a new regime
Russian supply cuts to Europe sent shockwaves through the global gas market across 2021-22. Market stress subsided to some extent in 2023, but the crisis is not over. The LNG market is set to remain in a tight regime until the next wave of supply ramps up from 2025-26, dominated by North American and Qatari volumes. In the meantime, demand response mechanisms in both Europe and Asia are setting global LNG prices. In Europe, the primary demand response mechanism is the switching of gas for coal plants in the power sector. In Asia, demand response is a more complex mix of fuel switching and industrial demand response. Asian demand flexib
Also in this section
16 April 2025
Israel continues to strike new oil and gas concession agreements and gas exports continue to rise, but an overreliance on Egypt remains the big concern
15 April 2025
Loss of US shipments of key petrochemical feedstock could see Beijing look to Tehran with tariffs set to upend global LPG flows
15 April 2025
Australia’s East Coast Gas projections for a supply shortfall have been pushed further out, but the challenge to meet evolving gas demand and the shifting assumptions around the fundamentals remain just as stark
15 April 2025
Long-delayed prospects for onshore LNG production in Mozambique have improved thanks to US financing approval, but security challenges blight way ahead
