12 September 2022 10 : 30 PM to 12 : 30 AM Online
The gas market has become global in its nature rather than the previous regional price structure which was regionally based. Furthermore as Regasification Terminals have increased in number, there is increasing competition between pipeline gas and LNG (particularly in Europe). This has led to increasing price volatility as these market influences interact.
One may be forgiven for believing that the recent spike in gas prices and shortage of supply are unheralded. However, some facets of the current situation could have been forecast with a quick analysis of trends from the previous decade. The low prices for both oil and gas of the period between 2010 and 2020 constrained investment. Companies found it difficult to make Final Investment Decisions (FIDs) when prices were low, despite arguments about the benefits of counter cyclical investments. During that period, gas demand continued to be driven by population growth and the propensity for all populations to try and improve living standards by consuming more energy. Arguments advanced about gas being a clean and efficient fuel, at least for climate change reasons, further encouraged the growth in demand for gas. Of course the Covid-19 pandemic still cause demand fluctuations as well. The invasion of Ukraine has brought the whole issue of security of supply into a sharp focus.
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