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IGU 2022 Global Wholesale Gas Price Survey Report
in 2021, reaching 46% of total LNG imports, up by 2% year on year. The growing share of total GOG in LNG imports was a continuation of the trend that took off in 2017 (the total GOG share of LNG imports in 2016 was 25%.)
, especially Henry Hub. The volume of spot LNG cargoes was only marginally higher, but the share of spot LNG cargoes in total LNG imports declined, for the first time since 2016 (34% vs. 35%).
- at 49% of total world gas consumption, a slowdown in a strong trend toward increasing GOG over the years. This is up by more than 50%, compared to 31.3% in 2005 when the IGU launched its first survey.
to just over 19% of the total gas consumption, with the volume up by 64 bcm.
, from the record lows of 2020 to new record highs, and the trend of global market price convergence has stalled. The average world wholesale price levels went from their record low of $3.22 per MMBTU in 2020, to $5.54 in 2021, which was just below the highest level of $5.58 recorded in 2013.
Unprecedented increases in spot prices and price volatility, from the lowest depths of Covid-19 in 2020 to record-breaking highs in 2022, have put the gas markets into uncharted territory. The close to half of the LNG supply using market-based pricing is what allowed the gas market to continue functioning and deliver gas to customers, despite colossal global shocks.
The rise of market-priced share of global LNG trade to just under 50% of total imports in 2022, allowed the global gas market to respond effectively to the significant change in LNG demand and changing LNG flows. Most recently with LNG being diverted to Europe to replace declining pipe imports from Russia .
Competitively set market pricing is the very definition of flexibility, which is what is required in the currently turbulent market. Thanks to the large share of gas-on-gas priced volumes, the market was able to send effective price signals for the supply to go to where it was required most. In a situation of an extremely tight market, with no excess capacity and demand growth outpacing new supply additions, higher prices acted to move scarce supply in new directions.
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The Annual IGU Wholesale Gas Price Survey report was launched in 2005. It is a unique global database on the evolution of gas markets, changes in gas price formation mechanisms, and wholesale gas prices. 2022 Edition includes data from 96 gas markets, covering 98% of total world natural gas consumption. It is produced by the IGU Strategy Committee and Michael Fulwood of the Oxford Institute of Energy Studies.
The International Gas Union (IGU) was founded in 1931 and is a worldwide non-profit organisation representing more than 150 gas and related service industry members worldwide on all continents. The members of the IGU are national associations and corporations within the gas industry and related services worldwide, covering over 90% of the global gas market and working in every segment of the gas value chain, from the supply of natural and decarbonised gas, renewable gas and hydrogen, through their transmission and distribution, and all the way to the point of use. The IGU organises flagship international gas conferences, including World LNG Congress, the World Gas Conference (WGC), and International Gas Research Conference www.igu.org.
Tatiana Khanberg, Director of Strategic Communications and Membership, Tatiana.Khanberg@igu.org
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