Speaking at the Gastech conference in Singapore, officials cautioned that global availability for liquefied natural gas on the spot market is likely to be limited through at least 2025, thanks to a rise in demand from the European Union that has pushed up price pressure for Asian buyers.EU leaders have taken drastic steps to curb their reliance on Russian fossil fuels in the 18 months since its invasion of Ukraine, including banning Russian oil imports and natural gas imports beginning in 2027.
Although the EU met its 90% gas storage target earlier this summer, officials warned that the situation could worsen quickly if the continent does not experience the same mild winter as it did in the 2022-2023 season, which included a winter heat wave that shattered seasonal records in more than 15 countries and melted ski slopes, which were used in some cases as mountain biking trails instead.
In fact, even a normal winter could prove to be a “very difficult time for some of the Europeans, like Germany and other countries," said Freeman Shaheen, the director of Chevron’s global gas business.