Global pricing of liquefied natural gas (LNG) may experience a significant downward shift by the end of this decade. This projection comes from a top executive in the energy industry.
A Word from TotalEnergies Leadership
The Chief Executive Officer of French multinational energy corporation TotalEnergies, Patrick Pouyanne, issued this prediction. Pouyanne discussed the prospect of a 20% surge in LNG supplies, equivalent to about 100 million metric tonnes per year, by the year 2030. The recent expansion of Qatar’s North Field LNG facility sets the stage for a significant increase in supply, especially with the anticipated contribution from new projects in Qatar and the United States.
Impact of Russia-Ukraine Conflict on LNG Market
Global LNG prices skyrocketed following Russia’s invasion of Ukraine. There was an urgent necessity for Europe to secure alternatives to Russian pipeline gas supplies, contributing to an unprecedented spike in price. However, Pouyanne remains confident that the surge is temporary.
A Predicted Softening of LNG Prices
In an interaction with journalists, Pouyanne confidently predicted a noticeable price reduction for LNG, stating, “Probably by the end of the decade we will see a softening of prices.” He made these remarks during a groundbreaking event for the extension of Qatar’s immense North Field LNG capability.
These developments underscore the dynamic interactions between political events, energy markets, and pricing. It stands as a potential reminder for investors and stakeholders in the LNG market to stay alert to shifts in global geopolitics and their implications for the industry. As more supplies come into play and geopolitical tensions fluctuate, a decrease in LNG pricing may not only be possible but likely. This shift could have widespread implications for the energy market and the global economy as a whole.
