Changing Market Realities in Light of Continuing Low Gas Prices
Posted: 17 Mar 2016
Date Written: March 17, 2016
The decline in oil and gas prices drives to changes in markets. Three points surrounding gas markets are highlighted: changes in the US shale gas revolution, delay of expensive new liquefaction projects and a reinforcement of Gazprom's competitiveness in European pipeline gas supply. This leads to a hypothesis of a cyclic trends in gas: low price reinforces existing structures, while high price stimulates intra- and inter-fuel competition. Gas over-supply is foreseen till at least 2020, however the cyclic trend could lead to a gas deficit afterwards.
Keywords: gas markets, Henri Hub, Gazprom, liquefaction, LNG
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