Qatar and United States to feed global LNG appetite
Tuesday, May 3, 2022
Significance
LNG spot prices will remain elevated through 2025, dampening short-term demand growth in Asia and encouraging upstream gas sector investment in Europe and North Africa.
Impacts
- Investment in new LNG capacity will increase, supported primarily by Asian off-take agreements.
- New gas output investment is likely in countries with existing pipelines to Europe; East Mediterranean gas will also benefit.
- A shortage of LNG and high gas prices are likely to bring a return to increased coal use while renewable energy capacities are built up.