The various price indicators in the gas market have witnessed a dramatic change in the past few months. Every price indicator has been impacted by the dramatic jump in the spot prices in Asia, driven by the record-breaking cold snap that has hit the region. This has dragged liquefied natural gas (LNG) supply away from other markets, and a combination of higher demand, some global LNG supply problems and issues with shipping capacity have all combined to create a perfect storm for higher prices. In the summer months of 2021, a rebalancing of the global gas market is expected as a potential supply surplus is being anticipated. On the regulatory front, a positive picture is being painted for the gas market in Asia and China due to continued policy support, regulatory changes and establishment of a more competitive market. Further, decarbonisation is also becoming a vital aspect for the gas sector as it could influence the future global energy mix. There is an increasing trend for global decarbonisation commitments and the COP-26 in Glasgow can act as a potential catalyst for more concrete action towards decarbonisation.
In the first OIES Gas Quarterly of 2021, a review of global gas prices is provided. Further, the report highlights 10 key themes that will play a vital role in shaping the outlook for the global gas sector over the next 12 months.