Dialogue Insights

• Gas is far from being just a bridging fuel. Gas is here to stay.
• An integrated global gas market is not likely in the near term.
• The three main gas regions (North America, Europe, & Asia) will keep their own fundamentals for some time.
• The regionalisation of gas markets does not imply lower interdependence.
• In the US, cheap gas displaced coal but in Europe cheap US coal has displaced gas.
• The energy mix in one region depends on the energy mix in another.
• In North America, UK, & increasingly Europe, gas trading at hubs provides liquid & transparent pricing data.
• In the US, deregulation & financialisation of the gas market helped establish a price based on fundamentals.
• The logic for establishing an Asian gas-pricing hub is questionable as the number of buyers & sellers is small.
• Demand for natural gas in the coming decades is projected to come mainly from non-OECD countries.
• Prospects for natural gas consumption are still tied to its applications as much as to its relative price.
• Gas usage depends heavily on an anchor technology, such as electricity generation.
• Markets remain interconnected and interdependent, despite the recent "re-regionalisation" of gas markets.
• More dialogue is required to analyse possible changes to the structure of gas contracts.
• Long-term contracts help ensure security of supply & demand, but there is room to incorporate market signals.
• Policymakers must balance short-term mandates with long-term goals for the nations they represent.
• Most stakeholders and market actors do not grasp the degree to which renewables need gas as a backup.
• Industry and government should work together to address "herd mentalities" regarding entering new markets.
• Future gas demand levels for transportation remain a "known unknown".