Oxford – Quarterly Gas Review Issue, 2024

The Q2 2024 gas data shows that European gas markets are now influenced by rising Asian LNG demand, with European benchmarks rallying due to this factor. Despite bearish price outlook based on European gas market fundamentals, pipeline supply into Europe increased by 16% year-on-year. However, LNG imports decreased, with overall European gas demand falling by 7%. Gas for power saw a sharp decline of 25% in Q2 year-on-year, while other sectors showed mixed signs of rebound. The outlook for the rest of the year suggests Europe's strategic renewables build-out will reduce the space for gas in the power sector, with a potential GDP recovery for industrial and residential demands not expected until 2025 at the earliest. Despite uncertainties, such as politics and weather, the European market is expected to be prepared for any challenges, with LNG imports likely to meet storage injection targets.