With the heating season around the corner, gas supply security is more relevant than ever, so how about a short Commentary on this issue?
The 2022/23 gas supply shock profoundly transformed the global gas market: the phase-out of Russian gas reduced not o lu volumes but also supply flexibility, LNG became a new baseload source of supply for Europe, while China’s balancing role is set to increase.
The structural changes means that we all need to carefully reassess the architecture of global gas supply security, through a close dialogue between policy makers and market players.
Questions are ranging from investment requirements, potential improvements of midstream flexibility tools, demand side response and voluntary gas reserve mechanisms.
This short Commentary is essentially a think-piece, written in the lovely hills of Buda, with the hope that it will help to kick-off some discussions on global gas security, including at the LNG Producer-Consumer Conference in Hiroshima.
The gas industry has a long history of resilience, creativity and ability to reinvent itself. I have no doubt that we will be able to reinforce the architecture of global gas security in the coming years through closer international cooperation and more commercial innovation.
Source: Greg Molnar (LinkedIn)
