This year, the traditional Cedigaz Annual Seminar held on 29th June coincided with a time of apparent respite for the European and global gas markets. Europe managed to avert a major supply crisis last winter, stocks are high, and storages could be full by September, and gas and LNG prices have softened from record breaking levels in 2022. But as stated by Cedigaz’ newly appointed chairperson Mickaele Le Ravalec in her opening speech, supply fears remain very much alive for the winters to come, underpinning continued tensions and price volatility risks across global gas and energy markets.

These risks are compounded by increased pressure to accelerate the energy transition, to reduce Europe’s dependence on Russian gas, as well as to drive energy efficiency and savings.

European gas participants stand therefore at a crossroads of multiple, greater uncertainties encapsulated in the perennial trilemma of ‘Decarbonization, Affordability and Security’.
Carving a medium to longer path is proving more difficult for the gas industry. But discussions during the seminar also warned against a euro-centric view of the energy crisis. Indeed, the repercussions of last year’s energy crisis into global markets are still unfolding through relentless inflation, industrial demand destruction, currency and liquidity crunch, as well higher fuels and food prices in developing countries.

Quarterly report – Q3 2021 – International natural gas prices

  • In a context of an unprecedented tightness on the global gas market, European and Asian spot prices continued their dizzying ascent in the third quarter of 2021. The historic surge became more pronounced as the year progressed and the market tightened.  
  • In Europe, low gas inventories, reduction of both regional production and pipeline imports (from Russia and Norway) as well as record-high carbon prices have propelled the TTF price, which provided a price floor for north-east Asian LNG. 
  • In September, international spot prices went stratospheric, spurred by fresh European concerns over Russia’s ability to increase pipeline exports and continued competition for spare LNG cargoes from Asia and South America. 
  • Spot prices also spiked in Asia. The Asian bull run was mainly driven by gains on the Dutch TTF hub. At the regional level, LNG demand outpaced LNG supply, which underperformed due to a series of unexpected outages. 


The Australian government released the National Hydrogen Strategy (the Strategy) in November 2019 and has continued to outline its support for hydrogen through the First Low-Emissions Technology Statement, released in September 2020. The government has stated its commitment to reducing Australia’s emissions through technology investment, rather than through carbon pricing, with the Technology Investment Roadmap a core element of its long-term emissions reduction strategy.

  • The government has taken a technology-neutral approach and the Strategy refers to ‘clean’ hydrogen, which includes both green and blue hydrogen.
  • The Strategy is export oriented. Building on Australia’s unique assets and its track record in energy exports, it aims to build large-scale supply chains to make Australia a leading exporter of hydrogen energy and technologies, and one of the top three exporters to the promising Asian markets by 2030.
  • While primarily focused on the export market, the Strategy looks to initially build a strong domestic hydrogen sector that will underpin Australia’s export capabilities. Hydrogen demand will be concentrated in large hydrogen hubs and will focus on four applications:  its use in transport, as industrial feedstock, blended in gas networks and for electricity grid support/energy storage.
  • One of the government’s priorities and a key success factor for Australia’s hydrogen industry is to reduce the production cost of hydrogen below AUD2/kgH2 ­— US$1.4 (‘H2 under $2’).
  • From 2018 to May 2021, at least AUD1.5 billion (US$ 1.1 billion) have been awarded or committed to progressing clean hydrogen projects. Support is also provided to CCUS technologies and the creation of CCUS hubs, with the goal of reducing the cost of CO₂ compression, hub transport, and storage for CCS below AUD20/tCO₂ (US$14).