Gas exchange prices in Europe are unlikely to decline seriously until 2024-2025 as global liquefied natural gas (LNG) production capacity increases. “Vygon Consulting” consultant Ivan Timonin told RIA Novosti about this.
“A significant reduction in quotas is possible only after the increase in the world’s LNG production capacity, which will happen in the medium term after 2024-2025,” Timonin said.
According to him, at the moment there are not enough LNG volumes on the market to meet all the needs. As a result, Europe and Asia are competing for supplies, driving up gas prices.
He added that now the price of gas has increased due to the desire of European countries to replace gas supplies from Russia with alternative sources. Accordingly, according to the results of the year, the supply of LNG to Europe may amount to 120 million tons, which is one and a half times more than last year.
On November 24, Sid Bambawale, a spokesman for the Swiss-Dutch oil trader Vitol, said that the energy crisis in the European region will continue for several years. According to him, as well as according to other market experts, the demand for energy should decrease with the additional supply of natural gas.