Global Gas Market Tensions Persist Beyond Winter

The global natural gas market may remain under strain well beyond winter, according to Menelaos Ydreos, Secretary General of the International Gas Union (IGU). The forward price curve suggests supply difficulties could persist until next summer.

A disruption to liquefied natural gas (LNG) exports from the Gulf is causing uncertainty in the market. Cargoes can be redirected from one region to another depending on prices, as seen with Canada's third LNG agreement with Australia's Santos.

The IGU and Italy's Snam report estimates that around 20% of global LNG supply is constrained by the disruption in the Strait of Hormuz. However, this only accounts for about 3% of total global gas supply.