Global gas prices will rise for the first time in two years

According to a report jointly released by Italian grid operator Snam SpA, the International Gas Union trade lobby group and the Boston Consulting Group, global natural gas prices are expected to rise
for the first time in two years due to the growing global demand for the cleanest fuel.

Under almost all major scenarios, including the most radical low-carbon transition scenarios, consumption of the cleanest burning fossil fuels is expected to grow
, the report said.

The increase in natural gas prices will be mainly due to the impact of higher crude oil prices on oil-related supply contracts and stronger-than-expected
demand for liquefied natural gas (LNG).
Among the world's major gas hubs, the price of natural gas in the United States remains the cheapest, with prices 62% lower than in Asia and only half
the price in the European Union.

Marco Alvira, CEO of SNAM, said in an emailed statement a few days ago: "The flexibility of natural gas and its easy transportation and storage make it an ideal partner
for renewable energy growth.
Thanks to the development of green gas technology, natural gas itself is becoming a renewable energy source
.
”

With the exception of the decline in natural gas consumption in the United States, mainly in the power sector, natural gas demand is rising
in the rest of the world.
The main reasons for the decline in natural gas consumption in the U.
S.
power sector are price increases, pipeline restrictions, and more renewable energy production replacing natural gas
.