From a pure gas industry perspective, it was basically an almost relaxed year. The market reached a new equilibrium that reflects the increasing exposure to the global LNG market. Risk premiums were largely priced out over the course of the year, the curve became increasingl ‘flat’ and the spreads between the futures products narrowed. This also applies to the Calendar Years 24 and 25, where backwardation switched to contango at the end of the year, to use traders’ lingo.
The market remains structurally tight. Thus prices are not at pre-crisis levels and volatility remained high. There were also market phases with quite irritating price overshootings, for example in response to possible strikes at Australian LNG terminals in August and September. And we are not out of the woods. The Russian war against Ukraine continues, and hybrid warfare by Russia against European countries cannot be ruled out. The high gas prices have also led to a significant decline in demand from industrial customers, which is, of course, economically very undesirable.