What are the key themes and trends for global gas and LNG in the year ahead?
These are interesting – and challenging – times for the global gas industry. Record high prices are a clear signal that more investments in supply are required but questions remain around the role of gas as a transition fuel.
All eyes were on COP26 last November, although answers were sparse. Nonetheless, 2022 will be a cornerstone for the gas industry. Policy-makers will need to provide clear signals as to whether they see gas as a transition fuel. The industry will need to step up efforts to decarbonise the gas and LNG value chain.
Meanwhile, high gas and LNG prices could prove to be a double-edged sword. It will improve balance sheets and support investments, including in decarbonisation. However, at the same time, it could put pressure on gas demand globally.
So, what will the year ahead bring? Our experts have come together to share their views on six key questions that will shape the global industry in 2022:
- Will gas/LNG prices soften?
- Will oil-indexed levels in long-term LNG contracts increase?
- Will the Majors join the LNG FID party?
- Will the LNG industry shift from carbon-offset cargoes to CO2 reduction?
- Will higher prices result in gas demand destruction?
- Will the EU taxonomy include gas-fired plants as ‘transitional investments’?