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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.

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