Wholesale Price Survey 2020 Edition

The twelfth IGU Wholesale Gas Price Survey, which began in 2005, shows the trend towards gas-on-gas competition (GOG) in the global gas markets, continued in 2019.

The share of GOG rose by 1 percentage point in 2019 from 2018 to reach 48.4%. This was almost all at the expense of oil price escalation (OPE), the share of which, fell by around 1 percentage point, to 18.5%. This was largely driven by a significant shift in LNG imports to GOG and away from OPE. The rise in GOG LNG imports in 2019, reflected both a sharp rise in spot LNG cargoes and the rise in Europe LNG imports, as a result of the surge in LNG supply, focusing on the trading markets of Northwest Europe.

The rising trend in GOG in LNG imports was a continuation of the trend over the last three years. The total GOG share of LNG imports in 2016 was 25% and in 2019 that had risen to 41%. The rise between 2016 and 2018 was all due to rising spot LNG imports, while in 2019 the increase was split equally between spot LNG imports and the rush of LNG to Europe’s traded markets.

Published on July 1, 2020 Download PDF (1 MB)