GECF – Monthly Gas Market Report, Aug 2024

The Global Economy is showing positive signs with a revised upward Global GDP growth of 3.1% for 2024, with the US expecting GDP growth of 2.6%, Euro area at 0.8%, and China at 4.8%. Global economic growth is projected to reach 3.2% in 2025, alongside an expected easing of global inflation to 4.5% in 2024 and further declining to 3.4% in 2025. In terms of Gas Consumption, the EU saw a decrease in gas consumption by 7% y-o-y in July 2024, while the US saw a 1.4% decrease driven by power generation sector decline. China experienced a 6% y-o-y increase in gas demand in June 2024 due to economic recovery and lower LNG prices. Gas Production varied with the US experiencing a decrease, Europe showing a strong rebound, and China maintaining growth driven by CBM output rise. Global Gas drilling rigs increased by 16 units in July 2024. In Global Gas Trade, LNG imports increased by 1.8% y-o-y in July 2024, driven by Asia Pacific and MENA regions. Europe's LNG imports declined due to lower consumption and high storage levels. Gas Storage levels increased in the EU and the US in July 2024, while in Asia, the combined LNG storage volume in Japan and South Korea stood at 14.2 bcm. Energy prices for Gas and LNG spot prices saw declines in Europe and Asia, with Henry Hub prices plummeting in the US. Expectations of above-normal temperatures may increase gas demand for cooling, potentially supporting prices, although high storage levels and robust LNG supply may temper any price gains.