Global gas markets long-term outlook H2 2019: Executive Summary

The global gas market oversupply will continue for the next couple of years and prices will remain low. But recovery is coming, The lack of LNG FIDs in 2015 to 2018 have sowed the seeds for price recovery in Europe and Asia from 2022. But record LNG FIDs this year and next and insufficient Asia LNG demand growth to absorb all these volumes ensures the return of another low price cycle from the mid-2020s. Russia will continue to defend its market share in Europe and so not all pre-FID LNG projects will reach first gas as quickly as planned. Prices in this period will be lower for longer compared to our previous outlook. The market will re-balance post-2030 and prices in Asia and Europe will be set by the cost of new US LNG. See our H2 2019 Executive Summary slide-pack to understand the key dynamics in the market and their impact on the forthcoming price cycle(s).