Switched On Fuel for Thought: Rising Tide of LNG May Become a Glut
Aug 21, 2024
Fauziah Marzuki, the Global Head of Gas Markets at BNEF, dives into the rapidly changing landscape of liquefied natural gas (LNG). She discusses how a surge in LNG supply could lead to a market glut and examines the pivotal roles of the US and China in global trade. The conversation touches on the impact of sanctions on Russian LNG, introducing the concept of a 'shadow fleet' evading detection. Ultimately, Fauziah explores the implications of shifting energy policies and the need for a balance between gas supply and demand in an evolving economic climate.
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Episode notes
Global Gas Market Insight
- The global gas market isn't truly global, but rather interconnected regional markets.
- LNG increasingly links these regional markets, creating global price sensitivity.
Nuclear Restart Relevance
- European gas analysts previously didn't need to know about Japanese nuclear restarts.
- Now, global LNG trade makes such information relevant due to market interconnectivity.
Market Interconnectivity Drivers
- Increased LNG capacity and political changes drive market interconnectivity.
- Emerging markets' reliance on LNG increases their exposure to global price fluctuations.