Global Gas and LNG Balance 2010

Michael Smith, BP

Provides an overview of recent developments in key markets, in respect to regional supply and demand, LNG supply and demand, and price signals; in the context of the near and long term market outlooks. It is apparent that: there has been a strong gas demand recovery in major markets, although there are significant weather and fuel switching elements within this demand recovery; delayed ramp-up in LNG supply and flexibility of European suppliers have limited the impact of recession on prices outside of N. America; the near term market outlook is highly uncertain but in the medium term the market will re-balance; contrasting supply trends will dictate future LNG requirements (shale gas in N. America, European production decline, and the emergence of new LNG importers in Asia and elsewhere).