What are the key themes to emerge in Natural Gas and LNG so far in 2024?
Top industry organizations have weighed in on the matter, including the IGU in their world LNG report.
Some takeaways with graphs from RBAC include:
- Supply Constraints and Equilibrium: The global LNG market has reached a newfound but fragile equilibrium after two years of turbulence. Supply remains the primary limiting factor for growth, and the market faces uncertainties due to its supply-constrained nature.
- LNG Export Growth: The growth of LNG exports continues to shape the market. Receiving capacity has expanded significantly, with almost 70 MTPA added in 2023, the highest since 2010. This growth is driven by demand in emerging markets.
- Spot LNG Prices and Import Recovery: Spot LNG prices declined in 2023, making import growth more feasible in Asia. The Platts JKM average was $13.86/mmBtu during the year. However, volatility remains above pre-crisis levels.
- Technology and Innovation: The LNG market is rapidly evolving in response to technology development and innovation. Market participants are diversifying, and technology adoption is accelerating.
And according to Wood Mackenzie:
- North American Natural Gas: In North America, key themes include storage development, resilient gas demand, infrastructure positioning for production growth, and the growth of LNG exports.
Whereas GlobalData is looking at a variety of themes involving the gas sector:
- AI and Cybersecurity: LNG, artificial intelligence (AI) and cybersecurity are all in the spotlight, impacting the energy sector.
And the US has indeed consolidated it’s lead and further replaced Russian gas according to the Energy Institute.
- U.S. Leadership: The U.S. solidifies its position as the top natural gas producer and LNG exporter in 2024, while European natural gas demand and production decline.
Overall, despite varying trajectories across different regions and sectors, the natural gas and LNG market is set for global growth in the coming years with more countries seeking to increase or add these fuels to their energy mix. Demand will continue to rise with advancements in technology requiring more and more power, and to meet this demand the supply of gas is increasing.
But how can one keep track of all the different aspects of this complicated and volatile market? The GPCM® and G2M2® market simulators are vital for any company or government looking to increase their knowledge on the current state of the market and forecast how it may change in the future.
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