Share to linkedin... [+]It is a buyer’s market for anything related to fossil fuels. Even traditionally the most expensive of them, liquefied natural gas , is in sharp decline.
China has a deal to buy LNG from its own investment in the massive Yamal LNG project in Russia, and is supposed to buy more from the U.S. too. There is plenty of it to go around, and Chinese demand is set to quadruple over the next 15 years as it is fighting pollution caused by coal-fired power plants. U.S. naturalOversupply is bad for energy exporters as margins compress, and not good for their buyers who are stuck with contracts signed at a time when prices were three times higher.
from highs of $17 per million British thermal units at their peak in 2012 and again in the summer of 2015 in Asian markets, and are now down to around $5 and change.China completely abandoned the U.S. LNG market In one of the more well-known cases of buyer remorse out there, Germany’s Siemens and Azerbaijan’s state owned energy exporter, SOCAR Trading, were awarded a deal to supply electricity and gas to Malta in a competitive bidding process. SOCAR Trading signed a deal in 2015 to supply LNG for a period of 10 years to Enemalta, the island’s main utility starting from 2017, with the price being supposedly fixed at 9.4 euros per one million British thermal units for the initial five years.
Don’t forget post brexit Britain. Thanks