The global gas and LNG market rebalanced in 2023 – perhaps more than many expected
What key themes will define 2024? And how will regional dynamics differ?
The global gas and LNG industry has faced unprecedented challenges in the wake of Russia’s invasion of Ukraine. But, after many twists and turns, the market rebalanced throughout 2023.
Weak demand has been the biggest driver, further depressed by benign weather dynamics. European gas demand dropped 7%, while the rebound in Asian LNG demand was weaker than many expected.
But momentum for LNG investments and contracting activity remains strong as players continue to position for a market with limited Russian gas to Europe and increasing Asian LNG demand.
So, what does 2024 hold for the global gas and LNG industry? Will it be another disappointing year for demand? What’s the outlook for prices? Is an LNG shipping oversupply on the cards? Can investments in new LNG projects hold their pace – and who will be driving the deals?
Wood Mackenzie tackles these questions and more in 'Global gas and LNG: 5 things to look out for in 2024'. Drawing on unique insight from Lens Gas & LNG, the research company explores the themes they will be watching closely – and offer some predictions for the year ahead:
Gas/LNG prices to soften further, but volatility set to remain
Global gas demand growth to remain limited
Spot charter rates will soften, but risks remain – volatility expected
LNG contracting and FID activity to ease
Pace of energy transition will face challenges, providing risk to Asian LNG demand growth potential.