Industry Trend Analysis - Rebalancing The Global Gas Market - MAR 2018

BMI View : Europe will resume its role as global gas sink over the period 2018-2020, as global LNG supply growth outstrips demand, forcing surplus cargoes into the region.

For the LNG market, Europe is relatively insignificant in terms of both supply and demand growth. However, over the coming years the region has an important role to play as global gas sink, absorbing surplus volumes of LNG. There are several features of the European that enable it (and no other region) to adopt this role:

  • Large and liquidly traded gas hubs, in particular NBP and TTF

  • Demand Swinging To Match Supply
    European LNG Imports, bcm
    Source: Bloomberg, BMI

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