European Union countries have increased their imports of liquefied natural gas (LNG) from Russia, contradicting the EU's goal of reducing reliance on Russian fossil fuels, according to a report by campaign group Global Witness.
The global LNG spot market is expected to remain volatile until 2025, with even a normal winter in Europe posing challenges for gas supplies, according to Chevron executive Freeman Shaheen.
European gas markets are expected to experience more volatility and higher prices as preparations for the winter heating season are underway, with disruptions caused by strikes at major liquefied natural gas (LNG) facilities in Australia leading to increased competition for LNG from other suppliers in Asia and Europe.
Freeport LNG, the second largest liquefaction facility in the US, experienced disruptions and canceled cargoes due to a slowdown in feedgas intake, while global gas markets face challenges from rising Chinese consumption, European market volatility, and potential disruption in Russian pipeline gas to Europe.
China sees Southeast Asia as geopolitically important and will prioritize investments in the region to counter U.S. influence, despite slowing domestic growth, according to economists. Additionally, Southeast Asia is a crucial source of critical minerals for China's green technology and electric vehicle ambitions.
China's natural gas demand is expected to grow by 8% this year, higher than analysts' forecasts, due to recovering industrial demand and lower global prices, with LNG imports and piped gas imports also projected to increase by 10.9% and 10.7% respectively in 2023.
The US markets traded mixed, with the Dow Jones Industrial Average dipping, while the small-cap Russell 2000 turned negative for the year; Asia-Pacific markets also fell, with Japan's Nikkei 225, Australia's S&P/ASX 200, and Hong Kong's Hang Seng Index experiencing losses; Southeast Asian countries are expected to drive demand for liquified natural gas (LNG) by 2030, particularly Vietnam due to its power plan prioritizing imported LNG; The British pound experienced its worst month in a year, falling 3.75% against the US dollar; Microsoft CEO Satya Nadella testified in federal court about Google's dominant influence over web publishing; The Russell 2000's negative performance suggests potential declines for stocks later in the year, although financials' sensitivity to interest rates may impact its accuracy as an economic indicator.
Qatar has signed a 27-year supply deal with the Netherlands to provide 3.5 million metric tons of liquefied natural gas (LNG) per year, following a similar deal with TotalEnergies, as Qatar expands its long-term gas supply to Europe.
Europe's energy strategy banks on hopes of mild weather and reduced industrial demand, but a wave of new LNG projects, set to tip the balance of markets, could bring about a new era of abundant liquefied natural gas supplies from the US and Qatar by 2025, transforming the gas market into a buyer's market.
