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Light at the end of the tunnel: European gas markets long-term outlook highlights - H2 2016

Light at the end of the tunnel: European gas markets long-term outlook highlights - H2 2016

Report summary

Global gas and LNG prices have been rallying ahead of this winter supported by high coal prices and booming LNG demand in China and India. 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. We outline the levers, and the risks, in this short note.

What's included?

This report includes 2 file(s)

  • Light at the end of the tunnel: European gas markets long-term outlook highlights - H2 2016 PDF - 266.06 KB 4 Pages, 0 Tables, 2 Figures
  • European Energy Service - Global Gas Prices - H2 2016.xls XLS - 240.50 KB


Volatility in oil markets and the growth of unconventional gas supply have created a high degree of uncertainty about future gas demand and the direction of gas prices.

This Gas Markets Long Term Outlook report forecasts future pricing, based on deep analysis of gas supply and demand fundamentals. Additionally, it addresses complex questions on gas flows, identifies future opportunities and informs fuel purchasing strategies.

Participants and investors can use this long term outlook report to understand gas markets and assess the impact of global gas dynamics and key market drivers.

Wood Mackenzie provides detailed supply, demand and price forecasts based on our integrated upstream, power, coal and LNG research. Our regional gas experts are based in the markets they analyse, providing comprehensive analyses of regional and global gas markets.

If you want to understand complex gas market dynamics and plan for the future, Wood Mackenzie is the premier resource to help you gain a clear, competitive advantage.

  • Executive summary
    • Booming China and South Asia to offset falling JKT demand
    • Market fundamentals in Europe are tightening …
    • …but pipeline imports in Europe are resilient
    • European spot prices will be set by US Gulf Coast LNG FOB in the medium term
    • Who is best positioned as the market recovers post 2023?
    • Multiple risks exist

In this report there are 2 tables or charts, including:

  • Executive summary
    • US LNG output and utilisation
    • LNG available to Europe vs flows
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