Global Power Rising, Along with Gas and LNG
The IEA just proclaimed, “global electricity consumption is expected to increase at the fastest pace in years” and it’s no wonder that Natural Gas and LNG projects continue to develop. Where is it hot and where is it not?
This month we present diverse commentary covering the markets from North America to Europe and Asia. We have a quick brief on how record storage levels in Europe are affecting demand; RBAC’s energy experts discuss regional market drivers across the United States and how they affect prices for consumers; Turkey’s newly discovered gas reserves in the Black Sea; and insights into the role that natural gas and LNG will play in Japan’s future energy mix.
We hope you enjoy these articles and interviews created to give you greater insight into energy markets and the industry, all with the goal to increase your knowledge and help you make better energy decisions.
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Quick Brief – Supply and Demand Trends in Europe
Europe’s natural gas consumption has been decreasing in recent years primarily due to weather and various government policies and initiatives aimed at reducing use of natural gas both as an energy transition policy as well as due to market tightness after the Russia reduced flows in 2021 and went to war with Ukraine in 2022 and sanctions were put in place.
In 2022, after the Russian invasion of Ukraine, Europe was left scrambling to fill the void of Russian gas. At the same time, members of the EU mandated that, “a minimum 15% reduction in natural gas consumption from August 2022 to March 2023.” This mandate was then extended to last through March 2025.
As a result of this rapidly decreasing demand, storage inventories across the continent are at all-time highs and continue to set new records.
Even the top consuming countries in the European Union—Germany, Italy, France, and the Netherlands—are seeing decreases in demand. The way LNG and gas storage affect regional gas balance, especially in comparison to Asia, as written earlier by RBAC’s global team. “For Europe, LNG could be more of a swing supply to meet marginal demand in the region, while for the Asian market, there is not as much aggregated flexibility in supply optionality in general, with more isolated local demand for each country, especially for Northeast Asia.”
Articles and Media
Gain insight into natural gas and LNG markets across the globe with analysis and commentary from our energy industry experts.
Power Plays Podcast: What the Shale Will Happen with Natural Gas Prices?
Will this be the last chapter of really low-priced shale gas? What’s happening in the Midwest? What are the implications for natural gas of growing power demand?
Dr. Robert Brooks Ph.D and Bethel King join Teri Viswanath and Tamra Reynolds to discuss the regional market drivers that cause vast differences in natural gas prices for consumers across the United States in this episode of the Power Plays podcast presented by CoBank.
Listen here and find out: Power Plays Podcast: What the Shale Will Happen with Natural Gas Prices
Turkey’s Gas Goldmine in the Black Sea
Off the back of a major natural gas discovery by Turkey last year in the Black Sea, Turkey is looking to ramp up domestic production to decrease the amount of gas being imported particularly from Russia.
The Evolution and Goals of Japan’s Energy Mix
Cyrus Brooks and Stuart Turley were joined by Dr. Takafumi Yanagisawa of the Institute of Energy Economics, Japan – IEEJ to discuss the role that natural gas and LNG will play in Japan’s energy mix and across Asia.
Essential Reading
Taken from the treasure trove of the writings from our energy experts. Here read technical insights and far-sighted analysis relevant through the lens of today’s energy.
Navigating Market Sensitivities: A Deep Dive into Winter Forecast Impacts on LNG Trade
We have seen summer impacts on energy and even less than expected impacts due to storage. Looking forward toward winter, let’s ask the question, “what are the market drivers that impact LNG trade during this time of year?” This article, also quoted in the Quick Brief above, also contrasts Europe and Asia on how they deal with marginal supply.
Read: Navigating Market Sensitivities: A Deep Dive into Winter Forecast Impacts on LNG Trade
Food For Thought
Read some of our engaging commentary on social media and join us in the conversation.
Surge in Power Demand from Data Centers
Developments in AI are causing data centers to consume vast amounts of energy that will only continue to grow alongside technological advances. This rising power demand is putting the energy industry in a tricky position. How are they responding?
Read here
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