The President of the European Commission, Ursula von der Leyen, has said that the commission expects global gas prices to fall as the supply of liquefied natural gas (LNG) increases thanks to investments in new projects.
Following Russia’s invasion of Ukraine, the supply of Russian gas to Europe was limited, potentially causing a shortage and triggering a crisis that saw gas prices soar to unprecedented levels. Since then, countries have established infrastructure to import LNG from countries like the US and Qatar, and accelerated renewable energy projects.
Speaking to the European Parliament at its plenary session, von der Leyen told lawmakers:
“During the energy crisis, many investments have been done. A large wave of new LNG export projects is coming to market. And we might soon be moving from a global shortfall to an abundance of LNG. As a result, we expect gas prices to fall.”
She added that this would create the breathing space to build more capacity with renewable energy, pointing out that wind-based electricity generation in the EU outpaced that of gas last year. The UK also depends heavily on LNG imports to supplement domestic production from the North Sea and gas imported from Norway, so cheaper global LNG prices will have positive implications for UK households.
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