The future for gas and LNG in Europe

LNG demand growth will start to catch-up with the current wave of supply build from 2021, tightening the market through to winter 2023/24. Current momentum on LNG supply investment decisions will deliver another wave of LNG, depressing prices once again through the mid-2020s. Decline in Europe’s indigenous production lifts its base LNG requirements but it will continue to act as a flex in the global market. Consequently, Europe will be increasingly exposed to global factors. Mounting decarbonisation objectives in the European market present downside risk to European gas demand through the long-term, but LNG requirements should still fare well – even under scenarios aligned with Europe’s climate change goals.