Oil price drop may affect LNG investment

The recent oil price drop has important implications for future LNG prices and the viability of planned LNG projects.

Winter has started in the northern hemisphere, but seasonal demand and prices in Asia, Europe and North America have yet to really pick up.

• Americas

  Events like the November polar vortex in North America will increase gas price volatility during winter

• Asia Pacific

  Regional demand growth is weak, but import requirements will still rise this winter

• Europe & Russia

  Regional production is falling, with upside from Dutch production limited in Q4

• Middle East & Africa

  IOCs' waning interest in Nigerian upstream sector may adversely affect LNG exports

• Norwegian gas – gaining further ground

  The strength of Norway’s position as a gas supplier in Europe is set to grow. As production increases in the mid-term, so too could Norway’s share of the European gas market

• Europe’s gas trading landscape is changing

  While NBP remains pre-eminent because of its futures’ trading liquidity, small hubs are picking up and TTF has become the main OTC hub.

• India needs wider gas market reforms

  While the recent gas price reform in India has its limitations, it has prompted debate on wider fiscal reform of the domestic gas market. This will prevent any immediate boost to domestic gas production.