The crisis has arrived: there is an almost complete lack of demand on the global gas market

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These are difficult times for the global gas industry. In fact, what has long been predicted has happened - a crisis of overproduction due to a mismatch between macroeconomic needs and an unreasonably inflated rush supply. The consequence was an almost complete lack of demand not only in Europe, but also in Asia, as well as a collapse in prices.

In anticipation of the launch of new liquefaction and export plants in the United States, this trend is a disaster. Each new terminal, each new gas cargo only aggravates the situation. Bloomberg writes about this.



Thus, deliveries to Europe in March fell by 20% compared to a year earlier and reached the lowest level since September last year.
The glut of LNG arriving in Asia in March was helped by lack of demand in Europe. Demand in Asia will fall further in the second quarter as it remains a more price-sensitive market.

Demand for refrigerated fuels has therefore surged in Asia following the fall in prices. March shipments to Asia were up 12% year-on-year and the highest for the month. The growth leaders were China, India and Thailand. However, then sobering set in, and the excitement quickly passed due to oversaturation. Purchases have decreased sharply. American exporters were left without their last hope and are forced to reduce production and processing rates of raw materials for liquefaction.

The worst thing about this situation is that it will last quite a long time, at least several months. Suppliers remain hopeful of a hot, dry summer that will help increase energy use for air conditioning, as well as a fall replenishment season. But in any case, this is too long a period during which production rates can be lost.

Developing countries see a positive in this whole situation - a market niche is being freed up for simplified procurement at an affordable price. However, large suppliers do not want to get involved with “retail” buyers, contracts with which are unattractive compared to mass shipments to the EU and Asia.
  • freeportlng.com
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7 comments
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  1. +4
    April 2 2024 20: 07
    Oh, these Western experts whine every day about oil and gas - now a scribe, then progress, then again a scribe...
    In short, progress changes with regression 10 times a day!
    1. 0
      April 2 2024 20: 55
      It’s local journalists who are “sweeping a snowstorm” and putting Gazprom in shock.
  2. +1
    April 3 2024 06: 42
    Well, then now Geyropa will survive just fine without our gas, and not as we were promised, and will not close production. The bourgeoisie got out!
  3. 0
    April 3 2024 07: 29
    There is some connection with the economic crisis.
  4. +1
    April 3 2024 08: 10
    Even God is against gas supplies between warring parties
  5. 0
    April 4 2024 08: 50
    The crisis has arrived: there is an almost complete lack of demand on the global gas market

    Reminds me of the demand for our “domestic” auto industry. Either the money ran out, or the desire to own. Interestingly, given these expectations, the price will not fall, either for gas or for the auto industry.
  6. 0
    April 7 2024 10: 38
    It's a shame to sell irreplaceable resources for pennies. They are not bottomless yet. They will end and no one will need us, neither strangers nor our own people...