LNG market supply-demand balance to remain tight in 2022: Shell
The global liquefied natural gas (LNG) market is expected to remain tight this year following last year’s volatility which saw demand rise 6% and gas prices hit an all-time high, Shell said on Monday.
Natural gas prices around the world soared late last year due to a combination of tightening supplies, weaker renewable power generation and a strong growth after Covid-19.
“The high prices we’re seeing at the moment are being driven by fundamentals, low storage levels and supply uncertainty,” said Steve Hill, executive vice president, energy marketing.
He added that the lack of new supply and the reduction of investment in LNG are other reasons behind the tight market.
