LNG Report 2022 - 02

While true of many commodity markets in 2021, price volatility in global LNG and European gas markets also increased significantly year-on-year. In the winter season, prices became so high and volatile that the number of market participants trading LNG dwindled and market activity in key demand regions declined. 2022 largely showed the same dynamic in Q1, although exchanges also hiked margin requirements for derivatives contracts, making it more difficult to manage price risk as well as tying up more credit and further reducing trading opportunities.