GECF – Monthly Gas Market Report, Dev 2023

The GECF Monthly Gas Market Report for December 2023 provides an overview of the global gas market. The report highlights the latest forecast from Oxford Economics, which projects a slowdown in global GDP growth for 2024. The Euro area is expected to face challenges, but a gradual recovery is anticipated. In terms of gas consumption, the European Union experienced increased demand in November 2023, driven by the residential and industrial sectors. China also saw a rise in gas demand due to the resurgence of economic activities following the easing of COVID-19 lockdown measures. The United States observed an increase in gas consumption, particularly in the power generation sector. Regarding gas production, Europe experienced a reduction, while the US saw an increase. The global count of gas drilling rigs also increased, although there was a year-on-year decline. In terms of gas trade, pipeline gas imports in the EU stabilized, while global LNG imports increased, primarily driven by the Asia Pacific and LAC regions. However, Europe continued to experience a decline in LNG imports. On the supply side, global LNG exports grew, mainly from Malaysia, Mozambique, the United Arab Emirates, and the US. Gas storage levels showed an increase in the EU and the US, while the combined volume of LNG in storage in Japan and South Korea also rose. Energy prices saw a rise in gas and LNG spot prices in Europe and Asia, influenced by increased European gas demand for heating. However, there was also downward pressure from ample EU storage levels, robust LNG supply, high Norwegian pipeline gas supply, and sluggish Asian LNG demand. Overall, the report highlights the importance of temperature as a determinant for spot prices in the upcoming months.