Is the global supply-demand balance currently hanging by a thread?

November 08, 202314:00GMT

Is the global supply-demand balance currently hanging by a thread?

According to the International Energy Agency, as winter approaches, a combination of favourable LNG market dynamics, robust pipeline deliveries from suppliers, lower demand, and policy actions has given Europe a chance to sidestep some of the worst immediate impacts of steep cuts to natural gas deliveries. 

Furthermore, mild weather, healthy storage levels and strong LNG supply have led to a significant fall in some natural gas price markers. Leading up to the World LNG Summit & Awards, industry experts from BRG Energy & Climate and RWE Supply & Trading discussed whether the global supply-demand balance is currently hanging by a thread. 

Key takeaway points

Optimism

The reasons to be optimistic: price spikes, volatility, and illiquidity

Risks

Present risks to watch and their impact on the supply-demand balance

Trends

New trends in supply capacity additions

Growth

Long-term commitment to LNG demand growth

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