Australia Strikes May Impact Short-Term LNG Prices: Shell

Global gas prices may rise in the short term if strikes at Australian LNG facilities go ahead, but markets remain well balanced with healthier inventories, according to Shell.

• "Supply and demand balance in LNG is quite matched which is why we see some vulnerability (in prices)," Zoe Yujnovich, Shell's integrated gas and upstream director said.
• She added that the looming threat of strikes has not spurred any changes in hedging or buying patterns, saying that "It's been a little bit of an over-reaction globally in terms of price response."
• Markets are currently awaiting the outcome of ongoing discussions between Woodside and the unions, which could result in industrial action by 2 September. Chevron plans to increase domestic gas output ahead of possible industrial action.
• Shell did caution that a revival in strong Chinese natural gas demand could put pressure on the market this winter.
• While Shell remains bullish on long-term LNG fundamentals, Chinese economic uncertainty remains a downside risk for demand.