Last month, the European Union’s gas consumption recorded a year-on-year decrease of 4.6% to 17 bill cu m, which was mainly driven by higher nuclear and solar output in the power generation sector.
US gas consumption dropped by 2.3% y-o-y to 73 bill cu m, with the power generation sector leading the decline, while in July, 2024, China’s apparent gas demand rose by 7.4% y-o-y to reach 35 bill cu m, driven by soaring temperatures, particularly in Shenzhen, a key region for gas-fired power generation.
In the first seven months of this year, aggregated gas consumption in key gas consuming countries, which account for 60% of global gas demand, increased by 2.2% y-o-y to reach 1,390 bill cu m, the Gas Exporting Countries Forum (GECF) said in its August monthly report.
As for gas production, in August, 2024, the US continued its downward trend to total 98 bill cu m, representing a 1% y-o-y decline, as a result of announced gas production cuts amidst low Henry Hub gas prices.
In July, 2024, Europe’s gas production saw a decline of 0.7% y-o-y in its monthly output to stand at 15 bill cu m, mainly driven by the large declines in the UK and the Netherlands’ output.
China maintained its gas production growth, with a 9% y-o-y surge, driven by unconventional gas’ higher output. Moreover, in Malaysia, the Kasawari field came on stream, with a target output of 5.6 bill cu m per annum.
In the first seven months of 2024, aggregated gas output in key gas producing countries, which account for 72% of global gas output, rose by 2.3% y-o-y to reach 1,815 bill cu m.
Last month, global LNG imports saw a slight y-o-y decline of 0.3% (0.1 mill tonnes), totalling 33.5 mill. This decrease was primarily due to reduced LNG imports into Europe, which outweighed the increases in the Asia/Pacific and MENA regions.
Europe's drop in LNG imports was linked to lower gas consumption, high storage levels, and strong pipeline gas imports, which amounted to 13 bill cu m, just 2% lower than the previous year's figure, the GECF said.
On the supply side, an increase was driven by stronger exports from Nigeria, Qatar, Russia and the US.
Global LNG imports between January and August 2024 totalled 272.5 mill tonnes, reflecting a 0.7% y-o-y increase.
The Asia/Pacific region was the largest importer with 187.5 mill tonnes, followed by Europe (67.4 mill), Latin America and the Caribbean (9.2 mill), the MENA region (2.3 mill), and North America (1.1 mill tonnes).
For the full year 2024, global LNG trade is predicted to rise by 1-1.5% driven by stronger demand in the Asia/Pacific region.
In the EU, the monthly average volume of gas in storage increased to 93 bill cu m in August 2024, which represented an average regional capacity of 89%.
In the US, the average gas storage level finally returned to the fiveyear range in this year, increasing to 93.5 bill cu m, or 70% of the country’s capacity. In Asia, the combined volume of LNG in storage in Japan and South Korea was estimated at 13.5 bill cu m.
Gas and LNG spot prices in Europe and Asia surged, reaching their highest levels of the year.
The August average TTF spot price was $12.21 per MMBtu, reflecting a 19% month-on-month increase. Similarly, the average northeast Asia spot LNG price experienced a 10% m-o-m increase to $13.20 per MMBtu.
Meanwhile, in the US, Henry Hub prices declined, averaging $1.99 per MMBtu.
Although market fundamentals appeared to be balanced, it remained highly sensitive to supply risks.
Looking ahead, extensive maintenance at Norwegian gas facilities could sustain bullish sentiment, though Asian price sensitive buyers may remain cautious, the report concluded.
