In 2023, global gas prices held steady at a level above long-term averages, according to a British Shell annual report focused on the LNG market. The assessment reflects a market balance shaped by several concurrent forces, including a milder winter across Europe, ample gas inventories, a rebound in nuclear energy output, and a revived Chinese economy. These elements contributed to a reduction in extreme price peaks and volatility that had characterized the market from late 2021 through 2022.
Nevertheless, the Shell analysis notes that current gas prices remain well above the levels seen in the 2017–2020 period. The report also underscores ongoing market tensions driven by a tighter natural gas supply from Russia, a development that continues to influence price direction and reliability across major consuming regions, including North America and Europe.
Looking ahead, the Shell findings point to Southeast Asia as a primary engine of gas demand growth. Countries in this region are expanding industrial activity, with petrochemical development playing a central role in shaping demand fundamentals. The report projects that, by the mid-2040s, global gas demand will reach a peak level in most economies, reflecting a broad industrialization wave and evolving energy mix in several large markets, including the United States and Canada through regional demand shifts and policy transitions.
There have been recent public signals from European policymakers and industry observers about energy diversification, with Austria signaling a move away from Russian gas. In parallel, analyses from various agencies have suggested a gradual reduction in oil and gas reliance on Russia by mid-century, a trend that would reshape global gas flows and pricing dynamics across North American, European, and Asian markets.
Overall, the Shell report offers a nuanced picture of a gas market in transition: prices that are not as volatile as in the 2021–2022 spike, yet elevated relative to the late 2010s, underpinned by supply constraints, shifting demand, and policy-driven realignments. For readers in Canada and the United States, the picture emphasizes the importance of monitoring regional supply resilience, storage strategies, and cross-border energy policy developments as they influence pricing, contracts, and long-term investment decisions in the gas sector. The outlook suggests continued attention to LNG demand growth, regional diversification, and the role of natural gas in supporting energy security during a period of energy transition and geopolitical change.