Energia
IGU 2020 Wholesale Gas Price Survey: 2021 continues liberalisation trend, gas continues its journey towards true global commodity market
Global gas markets saw a continuation of the strong trend toward competitive gas-on-gas pricing in 2020. Gas-on-gas competition (GOG) reached 49.3% -- one percentage point more than the year before. Between 2005 to 2020, the GOG share of global gas consumption rose from 31.3% to 49.3%, with the OPE (oil price escalation / linked) share falling from 24.4% to 18.6%.
LNG's inherent flexibility when combined with significant global demand for gas drove the move towards greater GOG pricing. The total GOG pricing share of LNG imports has nearly doubled in the last five years, having risen from 25% in 2016, to 44% in 2020.
, closely followed by Japan , with India in third place, Turkey fourth and South Korea fifth. Italy , Pakistan , Chinese Taipei and Spain also imported significant spot LNG cargoes, and , which by then were over one-third of total LNG imports.
The same trend can be seen in the of pricing, OPE is around 25% of all pipeline imports, BIM has the balance of 10%.
Finally, the narrative is consistent when considered market vs regulated pricing. Since the IGU started collecting data in 2005, the total "market" pricing share rose from 62% in 2005 to 71.5% in 2020, mirrored by a decline in "regulated" pricing, from 38% in 2005 to 28.5% in 2019.
Even though the Asia price divergence, from the rest of the world, was more pronounced in 2020, European prices are now much closer to the World average than they have ever been, breaking decisively from Asia and Asia Pacific prices. Prices in North America in 2020 were below the average for Latin America and even Africa . Prices in the Former Soviet Union, in $ terms, continued to be lower than in the Middle East .
Global wholesale prices declined again overall in 2020, with an already abundantly supplied market being further hit by the pandemic, leading to very sharp falls in spot prices around the world, to an average of $3.24 per MMBTU – the lowest global average in all the surveys since 2005.
please