IGU Wholesale Price Survey - 2019 Edition

May 10, 2019

Barcelona / Amsterdam, May 13, 2019 - The International Gas Union (IGU) today released its 2019 Wholesale Gas Price Survey at Flame 2019. The survey is the eleventh to be undertaken in a series that began in 2007. The eleven surveys have confirmed the significant changes in wholesale price formation mechanisms during a period of key developments and upheaval in the global gas market.

Key findings of this year’s survey include:

  • The share of gas on gas competition rose by half a percentage point between the 2017 and 2018 surveys to 47%. That largely reflected the increasing share of spot LNG cargoes in LNG imports and rapidly growing US consumption, that more than offset the declining share in pipeline imports, as a result of reduced European pipeline imports and increased China pipeline imports. The oil price escalation share declined by a quarter of a percentage point to 19%, with the loss in LNG imports being partly offset by gains in pipeline imports and domestic production in China.
  • 2018 has shown the most significant change in LNG imports of all the surveys, driven by the continued rise in Henry Hub priced US LNG exports but also by a general rise in spot LNG cargoes. The share of spot LNG imports reached just over 30% of total LNG imports in 2018 amounting to some 126 bcm – an increase of 65 bcm since 2016 or 10.5 percentage points. Gas on gas competition for LNG imports in the traded markets, mainly in Northwest Europe added another 4.5% of total LNG imports. Gas on gas competition accounted for more than 50% of LNG imports into Europe in 2018 – compared to 33% in 2017, while the gas on gas competition in the China and India sub-continent rose from 24% to 30.5% and for the Asia Pacific importers (mainly Japan, Korea and Taiwan) from 18% to 24%. Despite the growth in LNG imports between 2017 and 2018 of some 22 bcm or 5.5%, the actual volume of oil price escalation imports declined for the first time ever