Global Gas and LNG: 6 things to look for in 2023 Report

Insight 16 December 2022

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Report summary

No other commodity has faced the challenges that the global gas industry has faced, following the Russian invasion of Ukraine. Europe has grabbed the headlines, unsurprisingly. But 2022 has been much more, from record prices in North America to declining LNG demand in Asia; from momentum in LNG contracting to disappointment in LNG FIDs. What does 2023 hold for the global gas and LNG industry? In this insight we discuss 6 things we will be watching closely – and offer our predictions.

1. Europe: better than feared but not out of the woods yet
2. LNG demand growth in China will be limited, but risk is to the upside
- Limited LNG demand growth
- Risks to demand are on the upside
3. Henry Hub price retreats in 2023 as supply and demand start to rebalance
- Demand growth materially slows down
- Production growth accelerates
- Storage levels will normalize, but only beyond this winter
4. A bumper year for LNG FIDs, but some will struggle
- US LNG will remain hot, but it won’t be easy for developers
- FLNG is back in vogue
5. LNG contracting momentum will continue into 2023.
- Contracting momentum will continue, but less contracts will be signed compared to 2022
- US liquefaction tariffs will increase
- The return of Brent-linked contracts
6. Gas needs CCS to ensure demand longevity – investments might start happening in 2023