Can we expect fast recovery of gas?

10 / 06 / 2020
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The world’s largest liquefied natural gas trader, Royal Dutch Shell, expects buying and selling of the fastest-growing fuel to recover. Shell became the world’s top participant in the LNG business after the acquisition of BG Group Plc in 2016, which boosted its portfolio of supply contracts and stakes in LNG plants around the world.

But even the global leader will feel some pain in the short term. Shell warned in April that it’s gas liquefaction volumes may fall in the second quarter.

Global LNG demand took a severe hit when nations imposed lockdowns to combat the spread of the coronavirus, impacting the fuel’s use in everything from power plants to transport and factories. That came on top of the biggest glut of the fuel the world has ever seen, helped by two mild winters in a row.

Gas prices in Europe, one of the key consumers regions, could also “surprise to the upside” in the next two to three years as the glut gradually disappears. The recovery has already started as lockdown measures are lifted and demand could be back to normal in the next few months.

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