The compound annual growth rate (CAGR) of LNG supply-demand will be higher than 5% over the next 7 years, TotalEnergies has projected in its latest Energy Markets Outlook.
The compound annual growth rate (CAGR) of LNG supply-demand will be higher than 5% over the next 7 years, TotalEnergies has projected in its latest Energy Markets Outlook.
LNG market to remain tight until 2026-27 as new European LNG demand competing with Asia due to the constrained supply and the latter's appetite to advance the coal-to-gas switching plans.
However, new LNG projects coming on stream progressively in 2026-28 from US and Qatar would ease the competition.
Total Energies has reminded that despite entering the winter period with high natural gas inventories in Europe, in a tense market, gas prices remain very reactive to production disruptions.
Tight market over short to medium term causes high sensitivity to any supply disruption. “Oil, gas and LNG production at maximum capacity means that there is no spare capacity and therefore any unplanned disruptions like last year Freeport LNG long outage could hugely affect the currently tight energy market and intensify competition among European and Asian buyers for securing LNG cargoes in the winter,” Global LNG Info’s Analytic said in its latest multi-client LNG market consulting report.
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