MOSCOW, February 14. /TASS/. Global gas prices have stabilized in 2023 but remain above historical averages, Shell reported in its annual LNG outlook.
"LNG continued to play a vital role in European energy security in 2023, following a slump in Russian pipeline exports to Europe in 2022, with new regasification facilities helping to improve security of energy supplies. European LNG imports remained at similar levels to 2022, despite an overall decline in European gas demand in 2023," the report said.
At the same time, according to the company, reiteratively mild winter in countries that rely on gas for heating, "combined with high gas storage levels, stronger nuclear power generation and a modest economic recovery in China, all helped balance the global gas market in 2023."
"This helped bring down and stabilize gas prices in the key importing regions of Europe and East Asia compared to the record highs and unprecedented volatility seen from late 2021 through 2022. However, gas prices and volatility remained significantly higher in 2023 than in the 2017-2020 period," the report said.
Currently, gas on the stock exchange in Europe is trading below $280 per 1,000 cubic meters for the first time since July 2023, according to data from the London ICE exchange. At the same time, Shell reported that Europe imported 124 mln tons of LNG in 2023, at the same level as the previous year, despite a general decline in local ga demand.
This figure remained at the same level as in 2022, despite an overall decline in gas demand in Europe in 2023, Shell noted. The decline in demand (to just over 310 mln cubic meters in 2023 against more than 340 mln cubic meters a year earlier) continued due to reduced gas supplies to the region and high prices.
At the same time, global LNG demand will grow by more than 50% by 2040. "Global demand for liquefied natural gas (LNG) is estimated to rise by more than 50% by 2040, as industrial coal-to-gas switching gathers pace in China and South Asian and South-east Asian countries use more LNG to support their economic growth," the statement said.
Total global LNG trade volumes rose to 404 mln tonnes in 2023 from 397 mln tonnes a year earlier. By 2040, demand for LNG will reach approximately 625-685 mln tons per year, Shell believes.