The global gas market is projected to remain in surplus during the 2013-14 period as demand remains restrained and supply continues to expand. Global gas output is expected to grow by an average annual rate of about 3% during the 2013-14 period.
The rise in output is mainly attributed to increases in production in North America and the Middle East & Africa region, especially in Qatar and Saudi Arabia, as Iran's gas field development plans would remain constrained by the impact of Western imposed sanctions. In parallel, global natural gas consumption is expected to grow by an annual average of 3.3% during the 2013-14 period, mainly due to strong demand growth in Asia.
Further, the U.S. natural gas Henry Hub prices are forecast to reach $3.1 per million British thermal units (Btu) on average in the second quarter of 2013, while European natural gas prices are projected to average $11.45 per million Btu during the same quarter this year. Overall, the U.S. natural gas Henry Hub prices are anticipated to rise by 18.9% year-on-year to average $3.27 per million Btu in 2013.
Economic Intelligence Unit