The gas industry in 2023 has seen several significant developments:
- Natural Gas Inventories and LNG Capacity: The United States and Europe have relatively full natural gas inventories, and the global expansion of liquefied natural gas (LNG) export and import capacity has improved the likelihood that the global gas supply will be sufficient to meet demand during the 2023–24 winter season.
- Global Gas Supply Tightness: The global gas supply is expected to remain tight throughout 2023, influenced by a wide range of uncertainties. These uncertainties include potential adverse weather conditions, such as a dry summer or cold fourth quarter, reduced availability of LNG, and the possibility of further declines in Russian pipeline gas deliveries to the European Union.
- Focus on Africa: The International Energy Agency’s Gas 2023 Medium-Term Market Report offers an outlook on global gas demand and supply development until 2026, with a special focus on Africa. The report examines the potential for gas to contribute to economic growth and improved energy access in African regions.
- US Gas Production: In the United States, gas production growth in 2023 is expected to be primarily driven by the Permian region. The Appalachian Basin’s gas production is in a steady state, capped by infrastructure constraints. However, debottlenecking and compression expansions in the Permian region could allow for robust growth in gas production.
- Record Gas Exports from the U.S.: The first half of 2023 saw the United States exporting a record volume of natural gas, more than any previous six-month period. The average export volume was 12.5 billion cubic feet per day, which is 11% more than the same period in 2022.
These points highlight the dynamic nature of the global gas market in 2023, marked by strategic shifts, regional focuses, and response to global challenges.
