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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NATGAS
The European gas price rally from February lows, despite softening balances, underlines the impact of Asian demand, according to the OIES Quarterly Gas Market Review.
- Limited LNG supply growth is expected for the rest of 2024. Global LNG supply is marginally lower by 0.6bcm y/y in Q2 ahead of the startup of two small floating projects while Russia’s Arctic 2 project struggles amid western sanctions.
- LNG imports are sufficient to meet storage targets. A cold winter 2024/2025 would boost demand by 20-25bcm compared to an average, particularly in NW Europe but the European market is ready for winter.
- European LNG regasification capacity to grow in the rest of 2024 but several FSRUs set for launch in Q2 2024 have been delayed.
- China’s rebound in demand continues as price-sensitive buyers in Asia return.
- European gas demand remains well below pre-crisis level, declining by 10.8bcm y/y in Q2. Signs of industrial demand rebound are visible, but growth will be offset by a continuous decline in the power sector. Gas to power demand was down 25% y/y in Q2.
- A GDP recovery boost for industrial and residential-commercial demand looks set for 2025 at the earliest as EU manufacturing output remains low.
- Europe’s strategic renewables build-out increases reliance on gas as the intermittency gap widens.
Source: OIES
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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