Global gas markets long-term outlook - Base Case - H2 2016
Global gas and LNG rallied ahead of winter 2016/17 supported by high coal prices and booming LNG demand in China. With global LNG supply increasing by more than 10% in 2017 we expect LNG prices will soon come under pressure, despite increasing oil prices. But while an oversupplied global gas/LNG market remains inevitable for the next years, our H2 2016 update is for a tighter global gas market post 2019. Higher Asian LNG demand, lower European domestic production and higher coal prices, all combine for higher LNG prices, particularly in Asia.