On Thursday, consultancy Rystad Energy estimated the global gas prices for 2020 will remain lower than previous expectations, damaged by the coronavirus pandemic. Prices are seen to stay weak until 2022.
The European gas benchmark price at the Dutch TTF hub is seen to be at USD3.2/mmBtu, down by USD0.62 from February’s forecast. Asian spot LNG outlook was adjusted to USD3.80/MMBtu after crashing below USD3.00/mmBtu last week after gaining for three weeks.
In 2020, the gas prices at US Henry hub are predicted to average USD1.94/mmBu and USD2.43/mmBtu in 2021.
Further, Rystad estimated prices to stay weak to 2022, then in 2024 and 2025, the tightening supply could lead to price jumps. The agency foresaw a downside risk for 2026-2027 prices due to the potential over-investment in 2019 with new supplies become online.
However, Rystad opined that a better market balance could happen as the downside of the price in the period is more limited than its previous forecast as there are fewer liquefaction projects moving ahead.
Prior to the outbreak of the virus, the oversupply of liquefied natural gas (LNG) in the market had already sent the gas prices below average.
