Currently, all attention is on the liquefied natural gas (LNG) market, especially following the disruptions in Russian gas supplies and the volatility in the global gas market triggered by the Ukraine war and subsequent sanctions. Despite hopes for improvement by 2025, the market continues to face a shortage of supplies, contrary to earlier expectations of sufficiency and oversupply.
The current "limited" supply of the LNG market may persist, extending the market turmoil since the Russian invasion of Ukraine in February 2022. European consumption is expected to rise significantly next year, particularly as the continent prepares to receive the last Russian gas supplies via pipelines this year.
Forecasts indicate that the lack of ample supplies will continue to impact the market until 2025, with benchmarks in Europe rising by about 17% since March. This situation is exacerbated by delays in the launch of major LNG projects, including construction delays and maintenance work on existing facilities.
Despite these challenges, the LNG market is expected to overcome these fluctuations in the long term, with Qatar's North Field expansion project playing a crucial role. Qatar is focusing on completing this project by 2027 to meet the growing demand for LNG, with plans to expand production capacity by an estimated 49 million tons per year. This expansion is expected to contribute to Qatar's position as a major LNG exporter in the coming years.