BAKU, Azerbaijan, April 6. Global gas and LNG spot prices in 2023 are expected to remain volatile and may face headwinds, the Gas Exporting Countries Forum (GECF) said, Trend reports.
The annual gas market report issued by GECF reveals that the prices may be affect by several factors including a relatively mild winter, high underground gas storage levels in Europe, high LNG inventories in Asia and weakened gas demand growth in the midst of a slowdown in global economic growth.
“However, there may be some upward pressure on spot prices this year due to the anticipated recovery in China’s gas demand, higher import demand in price-sensitive countries in Asia and a rebound in gas demand in the industrial sector. Any further supply disruptions or extreme weather conditions during the year may also boost prices,” reads the GECF report.
GECF analysts note that gas and LNG spot prices in 2023 may also be influenced by market interventions, which may attempt to correct any supply/demand imbalances.
“One such government intervention was the Council Regulation (EU) 2022/2578, which established a market correction mechanism (MCM) for TTF derivatives. This regulation became effective on February 15, 2023 and will apply for one year. In addition to this mechanism, the EU Agency for the Cooperation of Energy Regulators (ACER) is expected to publish a daily LNG price benchmark by March 31, 2023 (as per Regulation (EU) 2022/2576). ACER published its first LNG price assessments for northwest Europe and south Europe on January 19, 2023,” the report says.
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