Under-investment spurs imbalance in global gas supply-demand

Under-investment spurs imbalance in global gas supply-demand

Under-investment spurs imbalance in global gas supply-demand

The supply-demand imbalance in the global gas market has been caused mainly by under-investment in the industry since 2015 on the back of very low gas prices and misguided calls to stop investing in natural gas projects.

This has only been exacerbated by geopolitical tensions and as Europe became the preferred destination for LNG cargoes to compensate for reduced pipeline flows. 

Industry experts say market tightness is expected to continue in the medium-term, as the majority of new projects will come on stream only after 2025.  

At a recent media event in Doha, HE the Minister of Energy Affairs Saad bin Sherida al-Kaabi told Gulf Times: ‘“Higher gas prices are caused by many factors. One of these is the Ukraine issue, which has made it a much bigger problem.

“If you go back a little bit, it was due to everybody pushing for green and demonising oil and gas companies and there were not enough investments (in the sector). And that caused higher price, which started before the Ukraine issue. The Ukraine issue has just made it a much bigger problem. 

“You cannot take a short-term view of what’s happening today. Gas prices, which you see in Europe today are