Monday 22 January 2024

Gas exporting group sees tight global LNG markets until 2026 | Reuters

Gas exporting group sees tight global LNG markets until 2026 | Reuters

The Gas Exporting Countries Forum (GECF) sees tight global liquefied natural gas (LNG) markets until 2026 as demand rises 1.5% this year and by up to 22% through 2050, the group's secretary general, Mohamed Hamel, said on Monday at a conference in Trinidad and Tobago.

The GECF represents natural gas exporters including Qatar, Russia and Trinidad and Tobago. Its members hold more than two-thirds of the world's gas supplies, according to its website.

In its annual report, the GECF last year warned about record high and volatile gas spot prices in Europe and Asia, and said energy security concerns were taking precedence over climate change mitigation goals, with policymakers focusing on meeting the energy needs of their people.

At the conference on Monday, BP's (BP.L) senior vice president for gas growth, Oksana Dembitska, warned about overly high LNG prices and said they have caused demand destruction, especially in the aftermath of Russia's invasion of Ukraine, which led to a seven-fold increase in prices.

However, BP expects that Europe will continue to be a key destination for LNG for at least another 20 years, which is supporting supply agreements, Dembitska said.

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