Natural gas: a story of surplus

Natural gas oversupply

Natural gas prices are expected to average $5.03 per million British thermal units (MMBtu) this year, rising to $5.85/MMBtu in 2011, according to a survey of major gas market participants conducted by Energy Risk in April (see table 1). Natural gas markets are likely to be characterised by over-supply well into next year as expectations for high liquefied natural gas (LNG) inventories and, to a lesser extent, the prospect of a US shale gas production boom keep prices depressed.

In 2009 the major