The world’s natural gas production fell in May compared to April, driven by lower output in Russia, the United States, and Norway, according to the latest data by the Joint Organizations Data Initiative (JODI).
The Monthly Oil & Gas Data Review of the latest JODI oil and gas databases updates showed on Monday that natural gas production in the 58 countries that have updated their most recent self-reported figures for May declined by 4.8 billion cubic meters (bcm) in May compared to April.
The monthly drop was driven by a fall of 3.2 bcm in Russia’s production, a 1.6 bcm decline in the U.S., and output falling by 1.3 bcm in Norway, which has now replaced Russia as Europe’s top natural gas supplier.
Compared to May 2024, global gas production inched up by 0.7 bcm, led by output growth in China, Qatar, Nigeria, and a smaller year-over-year rise in the United States.
Meanwhile, natural gas demand in JODI-reporting countries slumped by 12 bcm month-on-month in May and by 2.7 bcm year over year.
Major gas-consuming countries for power generation contributed to the monthly decline amid mild spring temperatures after the end of the winter. Demand fell in the United States, South Korea, Japan, Turkey, and the UK.
EU plus UK natural gas demand fell by 2.1 bcm m/m but rose by 2.8 year-on-year.
Total global gas inventories rose in May by 9.9 bcm m/m. However, these declined by 27.6 bcm year-on-year. EU+UK inventories increased by 7.2 bcm in May m/m but fell by 25.1 bcm y/y.
The annual drop in inventories suggests that countries will now have to buy more gas to fill up inventories ahead of the next winter.
The EU has eased the rules and targets for natural gas storage refills, in a move aimed at preventing price spikes, but peak summer heat across Northeast Asia is prompting a surge in liquefied natural gas (LNG) demand, forcing slower flows to Europe.
By Charles Kennedy for Oilprice.com
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