European gas markets long-term outlook - Highlights - H1 2016
Global gas fundamentals have shifted – creating a lower for longer outlook for LNG spot pricing, both in the Atlantic and Pacific. Wood Mackenzie believes that a significant tipping point has been reached, whereby Russia is now incentivised to pursue market share in Europe. This is due to a combination of greater LNG supply availability to Europe, lower coal prices and a higher US gas price. We outline the levers, and the risks, in this short note.