Execs Warn Against EU Complacency Over Gas Supply

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The near-term outlook for the global LNG market remains highly uncertain, even with European gas inventories near capacity. Europe finds itself in great shape after a mild winter and without typical Russian pipeline supplies, but gas executives says this is no time for complacency. The EU has yet to test its new gas supply paradigm, which relies more heavily on LNG for baseload, and many things could still go wrong as the global LNG market adjusts to Europe's new role as a major importer of the fuel. The International Energy Agency (IEA) estimates EU storage sites could hit 100% of their capacity by mid-September, potentially adding softness to the market. The Dutch TTF price premium to the Japan/Korea Marker, meanwhile, has dissolved, reflecting weaker demand in Europe, according to Energy Intelligence analysis. That contrasts with last year when the gas crisis in Europe made it the premium LNG market, drawing spot cargoes away from Asia. “I think the issue, of course, is that it's very uncertain,” Exxon Mobil Head of Global LNG Peter Clarke told Energy Intelligence at the LNG 2023 conference in Vancouver last week. “And therefore, there's likely to be quite a bit of volatility.”

Gas Inventories, Gas Supply, LNG Supply, LNG Trade, LNG Demand
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