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Significance
May prices are still high by historical standards but a mix of lower European consumption and weak Chinese demand has calmed fears of a huge supply shortfall, which caused a price spike as the Russia-Europe gas trade collapsed.
Impacts
Gas market uncertainty is driving renewable energy growth, curbing gas demand but sustaining some coal-fired generation.
The exposure of the US domestic gas market to international pricing will increase as the country expands its LNG export capacity.
China will more actively seek increased gas pipeline imports and long-term contract security in its LNG purchases.
South Asia will risk gas shortages this winter, if LNG prices again move higher and supply becomes constrained because of European demand.
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2023
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