Global gas markets long-term outlook: Base Case - H1 2017
There are signs of market recovery in the Pacific Basin as demand in China and South Asia looks increasingly promising and LNG supply shortfalls provide headroom for increased Atlantic LNG imports. But it is a different story in Europe where not only Russia but also Norway and Algeria seem now determined to maintain market share. We see the risk for a subdued European market to drag Asian spot prices down in the medium term. In the long-term global prices will recover as new supply is required to meet demand.