Natural Gas Markets Gas Goes Global: These are the Top Trends for LNG

It’s not just about oil: LNG is on the verge of becoming the transitional fuel for the coming low-carbon era. But as trade routes establish and production overtakes demand, the market for natural gas is developing rapidly. Here are four reasons to expect more change in a struggling global LNG market…

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Liquefied natural gas (LNG) is playing a huge role in the transition to a low-carbon world but it is also rapidly becoming a global commodity as its price crumbles on the open market. The problem for the industry is a structural change that may lead to even lower natural gas prices in the future.

“With a growing glut in globally tradable LNG, all industry players — buyers, sellers, traders, and governments, to name just a few — will need to adjust their operating models,” says Andrew Clark, an oil and gas and chemicals advisor for Strategy& and a partner with Pricewaterhouse Coopers (PWC) UK.

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“They should expect lower prices, more short-term trades, and demands for contractual flexibility. The right strategic response will vary from one player to another, and there is a great deal of risk and uncertainty. But any company in this industry can succeed by carving out a focused value proposition and developing the capabilities to deliver it.”

Between production trends and demand fluctuations, the professional services and auditing experts at PWC predict four forces that will weigh heavily on gas prices going forward making the market much more volatile, and risky…

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