Outlook 2024: Market regime shifts driving LNG portfolio value
Three main characteristics underpin a shift in global pricing dynamics creating a new regime
Russian supply cuts to Europe sent shockwaves through the global gas market across 2021-22. Market stress subsided to some extent in 2023, but the crisis is not over. The LNG market is set to remain in a tight regime until the next wave of supply ramps up from 2025-26, dominated by North American and Qatari volumes. In the meantime, demand response mechanisms in both Europe and Asia are setting global LNG prices. In Europe, the primary demand response mechanism is the switching of gas for coal plants in the power sector. In Asia, demand response is a more complex mix of fuel switching and industrial demand response. Asian demand flexib
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