Oil price decline start hurting international LNG market:PEW

January 31, 2015 Off By Web Desk

ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said oil price slide up to unprecedented sixty percent and concerns regarding future prices has started hurting international LNG market.

LNG prices were hovering around 20 dollars per mmbtu in 2014 but now it is at $7.45, the prices have reduced by 50 percent in the last four months, it said.

The fall in the LNG prices have added to the problems of investors resulting in stall or delayed projects while narrowing price gas has pushed USA out of the thriving Asian market, said Dr. Murtaza Mughal, President PEW. Several high-cost gas projects launched by oil and gas giants have hindered or be altered due to weakening prices, he added.

He said that the international supply of LNG has been projected to be boosted by 60 million tonnes but demand will be modest due to slowdown in some important economies and resumption of nuclear reactors operations in Japan and South Korea after 2011 incident.

Dr. Murtaza Mughal said that demand in China will be better as the country wants to divert power plants from coal and furnace oil to clean LNG.

Lauding the Pakistan’s LNG policy, he said that despite petrol crisis, the Petroleum Minister Shahid Khaqan Abbasi remains a better choice in the light of his past record. He is cautious now and pushing pipeline project which is the cheapest source of energy transmission in the world.

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