High energy prices have recently been one of the biggest economic challenges for many countries, and companies often point to them as the main obstacle to development. However, as “Puls Biznesu” emphasizes, investments in production capacity that were launched during the crisis are starting to bring results in the form of increased supply.
In recent weeks, investment banks and research centers have published a number of analyzes on the future of the gas market. Goldman Sachs predicts that European gas prices (TTF) could fall from the current EUR 30 per MWh to just EUR 12 in 2029. Meanwhile, Wood Mackenzie noted that a surplus of gas is already present in the market, not just coming.
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Although current gas prices remain influenced by changing weather conditions and winter weather in Europe, supply pressure is expected to lead to further price declines in the coming years.
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The International Energy Agency estimates that in the next five years the global gas surplus may amount to as much as 65 billion cubic meters. per year, which is approximately 1.5 percent. global consumption.
Impact on the market and consumption
Experts indicate that gas demand is characterized by low price elasticity, which means that price changes have a limited impact on the level of consumption. “Puls Biznesu” explains that even a small surplus on the market may result in a significant drop in prices. Similarly, in 2022, a relatively small deficit caused a sharp increase in energy costs.
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Everything indicates that the gas market is heading towards greater stability, which may bring relief to both households and businesses.
