Edition: Gas and LNG International Market in the Crisis
Black Swan and Energy Transition
Gas and LNG International Market in the Crisis
July 02, 2020
In this edition of the webinar series Black Swan and Energy Transition, the international consultant Ieda Gomes addressed the challenges that the natural gas and LNG market has been facing in recent years, aggravated by the Covid-19 pandemic.
In the international market, Ieda pointed out the tendency of the gas prices to converge to the US market prices (Henry Hub), historically the lowest among the references. With low prices, associated with uncertainties about the recovery of gas demand in the coming years, investments that would guarantee the projected supply are at risk.
In emerging markets, such as Brazil, Ieda highlighted the lack of infrastructure for gas use and a well-defined pricing policy. Systemic efforts are required to develop a strong domestic market in Brazil, which could justify the large investments in infrastructure. Faced with the transition, the role of natural gas in the energy matrix of the future needs to be clearly defined in order to give investors’ confidence and without losing sight of the other possible strategic paths.
As moderator, Alexandre Szklo, associate professor at energy planning program (PPE) at COPPE/UFRJ.