Global gas price volatility still a risk, even as Europe in a better position - GasTech attendees
After the Ukraine-Russia induced energy price spike, GasTech conference executives still say there is gas price volatility ahead. IG financial analyst Angeline Ong finds out why and what could prompt a price pivot.
Investors eye Aussie LNG sector
Global gas prices are still expected to be volatile, even as Europe is in a much better position this coming winter, industry experts at the Gas Tech Conference say. This comes as global gas prices leapt to all-time highs last year, if you remember, after Russia cut its gas supply to Europe, which then led the bloc to import record amounts from places like Asia.
And this led to Asian spot prices for LNG to hit historic highs. Now, Michael Lewis, the CEO of German utility Uniper, Europe's natural gas market, he says, was much better positioned this year, but could still be hit by volatility. And this comes as market-watchers eye the Australian liquefied natural gas (LNG) market.
Is LNG drying up?
Just showing you the chart here, which is all sessions on the IG platform. A senior executive at Chevron says there isn't quite enough LNG to go around still. And if any of the possible negative side events of weather or supply disruptions do occur this coming winter, then volatility will return.
Then there's also the added question of China, which is a huge consumer for LNG. If its economy starts recovering, it could be even more interesting in the months ahead for the LNG market.
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