Europe and the LNG market look in good shape to weather this winter. Moreover, the expansion of regasification capacity globally, suggests LNG’s value as a key component in mitigating Europe’s energy crisis is gaining more weight than the risk of temporary exposure to price volatility. [Gas in Transition, Volume 3, Issue 10]
“When she awakes she will shake the world.” Thanks for the insight Napoleon, but having woken, what happens when China falls ill? A weak Chinese economy creates a complex demand outlook for an LNG market in the midst of an expansionary supply-side phase. [Gas in Transition, Volume 3, Issue 8]
High storage levels and a relative lack of demand during the summer injection season continue to keep Asia Spot price around $9.26 per MMBtu and TTF price around $8.43 per MMBtu due to weak fundamentals.
No final investment decision has been taken on onshore regasification plants in Germany. The use of FSRUs – a necessary emergency option – means import capacity can be released. Nonetheless structural factors suggest LNG has a 20-25 year window of opportunity in the world’s fourth largest economy. [Gas in Transition, Volume 3, Issue 2]