The natural gas market is better supplied heading into this winter compared with last year amid fairly high stock levels, Colin Parfitt, Chevron’s president of midstream, told an industry conference in Singapore on Tuesday.
“We go into this winter with Europe being fairly high-stocked,” said Parfitt at Gastech 2023.
However, he warned about risks of volatility, especially if winter conditions turn colder than expected.
“My view is we’re not out of the woods yet, and we may not be out of the woods for a couple of years until this new supply comes up,” he said.
“I think you have a market here that is ripe for volatility for a while,” said Parfitt, adding that fundamentals could still be “relatively tight” until more supply comes back into the market.
Global gas prices leapt to all-time highs last year after Russia cut its gas supply to Europe, leading the bloc to import record amounts of LNG and causing Asian spot prices to hit historic highs.
(Reporting by Jeslyn Lerh and Sudarshan Varadhan Writing by Tony Munroe Editing by Louise Heavens and Sharon Singleton)