The Gas Exporting Countries Forum (GECF) launched the fourth edition of its Annual Gas Market Report (AGMR). The report provides an in-depth analysis of natural gas markets, covering recent developments and providing prospects for 2023-2024.
Secretary General of the GECF Eng. Mohamed Hamel said: “The AGMR is comprehensive and I hope it will become an essential tool for anyone interested in natural gas.” The key findings of the report include:
■ Record-high and volatile spot prices in Europe and Asia Spot gas and LNG prices in Europe and Asia reached record highs in 2022, with significant volatility throughout the year. This was mainly due to a tight LNG market as Europe’s LNG demand surged to replace lower pipeline gas imports.
■ Energy security takes precedence over climate change mitigation goals Energy security concerns took precedence over climate change mitigation goals in 2022, with policymakers focusing on meeting the energy needs of their people.
■ Global gas consumption declined in 2022, but expected to resume growth in 2023 Following a record rebound in 2021, global gas consumption declined in 2022 but is expected to resume growth in 2023 and reach an all-time high level, with the power generation sector remaining the largest consumer of gas. US, China, and some emerging countries in Asia Pacific are forecasted to drive the growth of global gas consumption in
2023.
■ Investment in oil and gas increases, but looming uncertainties may deter investment. Oil and gas investment increased by 7 percent y-o-y to reach $718bn in 2022, and is expected to rise further in 2023, but looming uncertainties may deter investment.
CCS/CCUS and hydrogen gain momentum for decarbonisation, but number of projects still far from required scale. CCS/CCUS and hydrogen have gained momentum as potential pathways for decarbonisation, with a significant increase in the announced capacity. However, number of projects that have reached the FID stage is still far from the required scale.
“The developments in the gas industry are an indication of the bright prospects for expansion of the global gas industry, as natural gas is set to play a pivotal role in socio-economic development and towards just and inclusive energy transitions,” added Eng. Hamel.
