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May 15, 2016
Global gas reset: Adjusting to new commercial realities
Time for a Reset
What is the value proposition for global gas development? Natural gas, and LNG in particular, is set to grow significantly and play a more important role: both in the investments of oil and gas companies, and within the portfolio of power utilities.
- Environmental and climate pressures have the potential to support wider adoption of natural gas
- To thrive on the supply-side gas needs to address the challenges of an extended market glut for current supply, and the cost challenges for future developments.
- To deliver on the demand side, gas needs to be competitive with competing fuels and renewable technologies.
- The study is arranged around three sections: supply costs; market competition; and trading rules.
- The timeframe is 2016-2025 with the emphasis on supporting investment or procurement business decisions over the next two to three years for projects which will start up in the first half of the next decade.
Study structure: Overview
- Section 1 Market Competition-The Fight on Two Fronts.
- Section 2 Supply Costs-The Reset and the Reshuffle
- Section 3 The New Trading Rules
Key Deliverables
Demand and price elasticity
- Regional price elasticity of demand analysis - relationship of prices to demand. At different price levels determination of possible demand levels by sector
- Supply and demand outlook, quantified annually to 2025 (Regional breakdown with certain specific countries illustrated)
- Demand by region/country and sector - residential, commercial, industry, power generation, transport
- Supply breakdown for each region/highlighted country
- Global trade balances- interregional, divided between pipe and LNG
Country Coverage
- Asia-Pacific - China, Indonesia, India, Japan, Korea, Malaysia, Pakistan, Philippines, Taiwan, Thailand, Vietnam
- Europe - EU* and Turkey
- Latin America - Argentina, Brazil, Chile
- Middle East - Egypt, Kuwait, Oman, Saudi Arabia, UAE (Dubai)
- North America - Canada, United States
Cost and prices
- Costs of production for conventional and unconventional gas by region/highlighted country
- Delivered cost comparisons for region/highlighted countries of domestic gas with imports – pipeline and existing/next generation LNG
- Cost analyses for the synthetic portfolio of archetype gas projected
- Drivers of gas prices and gas pricing mechanisms
Gas price forecasts for three regions
- North America
- Europe
- Asia
Country Coverage Exports
- Australia
- Canada (BC)
- Iran
- Israel/Cyprus
- Mauritania*
- Mozambique
- Nigeria
- Russia (pipe and LNG)
- Tanzania
- US Domestic production
- China
- India
- Norway
- US
For more information on Global Gas Reset: Adjusting to New Commercial Realities contact Cristian Muresan at cristian.muresan@ihsmarkit.com.
This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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