Quarterly Gas Review – Issue 20
In this first Gas Quarterly of 2023 we review some of the key events in the global gas market in 2022 and outline a number of important signposts that we will be looking out for in 2023 as we continue to monitor the main implications of the Russia-Ukraine war. At the time of writing in January 2023 the gas prices in Europe and Asia would seem to indicate a level of calm after the volatile storm that engulfed the global gas market in the aftermath of the Russian invasion of Ukraine in February 2022. However, we highlight that although prices are currently well below their mid-2022 highs they nevertheless reflect a tight market within which a number of potential triggers for a sharp upward spike in prices still exist. We review six key signposts – gas prices in Europe and Asia, the future of Russian gas supply to Europe, the availability of LNG supply, the outlook for Asian gas and LNG demand, storage levels in Europe and also implied demand in the region. Finally, we also look at the key trends in gas use in the power sector, reviewing the key drivers in 2022 and highlighting some key trends for 2023.