The Battle for Gas: Global Markets Stock Up for Volatile Year Ahead

We’re only 2 months into 2024, but the gas demand has caught the eye of even our most experienced analysts. 

According to the International Energy Agency (IEA), we’re stepping into a year where the need for gas will rise, driven by colder weather and somewhat softer prices. 

But geopolitical risks and supply-side concerns could trigger renewed price volatility, according to the report. 

Let’s delve into the complex story shaping up around the rising demand for gas. 

2023: Subtle Shifts Result in Big Changes 

The global hunger for gas nudged up by just 0.5% last year. 

China, North America, and select regions in Africa and the Middle East were on the lookout for more gas. 

Europe, in contrast, charted a different course. 

Natural gas consumption in the EU plummeted by 7%, hitting its lowest mark since 1995. This downturn was accelerated by the swift rise of renewable energy sources and more available nuclear power. 

This trend wasn’t confined to Europe alone but also touched other Asian markets, pushing gas prices downwards. 

The outcome? 

A dip in gas prices, reflecting the shifting appetites. 

On the supply front, the scenario was tight. 

Across the Atlantic, the United States emerged as a key player. 

It claimed the title of top LNG exporter, stepping in to bridge the gap left by dwindling Russian gas deliveries to Europe. This move reshaped the global gas market. 

Global LNG production’s growth didn’t meet the forecasts, leaving a gap not fully covered by the reduced Russian gas flows to Europe, despite the US’ input. Moreover, this growth in supply was not evenly spread but was notably concentrated. 

Predictions for 2024 

Fast forward to 2024 and the plot thickens.  

The IEA predicts a 2.5% increase in global gas demand.  

However, while the demand for gas is rising, getting enough of it might become a challenge. Key players are eyeing the dwindling supply, knowing everyone wants it.  

Border tensions, pipeline dilemmas, and unexpected incidents are expected to complicate the situation further. 

Amidst this uncertainty, nations are strategising like preparing for a winter siege. 

The European Union, Japan, and China have each drafted their master plans, seeking to fortify their energy reserves against change. 

Their objective is clear: secure a steady gas supply through the fog of geopolitical challenges. 

This situation could lead to price fluctuations, making the market unpredictable. 

Our Collective Journey 

Navigating 2024’s gas market will be a testament to the market’s collective adaptability. 

With every twist and turn, from supply challenges to geopolitical intricacies, we stand ready to face the future with informed strategies and a proactive stance. 

Our experts are watching every development, analysing trends, and providing advice to businesses on how to navigate the future.  

Our end-goal is simple: It’s not just about weathering potential storms; it’s about identifying opportunities in the midst of change. 

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