SINGAPORE/NEW YORK/BENGALURU : Some of the world's biggest importers of liquefied natural gas are reducing orders in the face of a 500per cent price surge within a year, raising concerns among major producers about potential long-term destruction of demand.
Within Asia, which accounts for 70per cent of global LNG imports, a majority of long-term contracts are oil-linked. But South Asian countries such as India, Pakistan and Bangladesh - which together account for 20per cent of Asia's imports - have a much higher exposure to spot LNG prices, which are currently at a record high of over US$50 per million British thermal units .
"We didn't like the low and flat prices everywhere in the world of around US$2 per mmBtu from a year ago, and I'm not sure what I dislike more with the very elevated prices we find ourselves in now," said Anatol Feygin, chief commercial officer at Cheniere Energy Inc's, the largest LNG exporter in the United States."It is a manifestation of the markets not being very good at investing through the cycle.
Global markets will have to wait until later this year to get more from the United States, when the sixth liquefaction train at Cheniere's Sabine Pass and Venture Global LNG's Calcasieu Pass in Louisiana are expected to start producing LNG in test mode.
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Fonte: ChannelNewsAsia - 🏆 6. / 66 Leggi di più »