ECONOMICS & MARKETS

WoodMac: Six themes of Asia Pacific’s gas and LNG markets in 2020
Wood Mackenzie has identified six themes that will impact Asia Pacific’s gas and LNG markets in 2020.

OGJ editors
Jan 13th, 2020
Wood Mackenzie has identified six themes that will impact Asia Pacific’s gas and LNG markets in 2020.

Asian LNG spot prices to fall further

In 2019, the global LNG market relied heavily on Europe to absorb excess supply. Surging new LNG production from US and Australian projects met stuttering Asia Pacific LNG demand growth and, with no place else to go, spot LNG was sold at a discount into European terminals.

“In 2020, Europe will again be called upon to save the day. However, unlike 2019, European gas inventory will start the year at record high levels. Europe will thus need to rely even more on flexible supply, or increased demand creation from within the power sector, compared to last year. Both indicate an even lower Title Transfer Facility (TTF) price for 2020 which in turn suggests lower spot price in Asia," said Wood Mackenzie research director Robert Sims.

“However, ever-present is the risk to LNG supplies from Qatar should US-Iran tensions escalate in 2020 to a point of causing disruption to shipping through the Strait of Hormuz.”

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