76595
Top Gas Exporters Convene in Bolivia
Top Gas Exporters Convene in Bolivia

Top Gas Exporters Convene in Bolivia

Top Gas Exporters Convene in Bolivia

Top officials of major gas producing countries gathering this week in Bolivia will face a harsh reality: Expanding supplies of the fuel are giving global buyers greater sway over purchase and contract terms.
This week’s Gas Exporting Countries Forum, which aspires to be the OPEC of natural gas suppliers, is expected to bring energy ministers from Qatar, Russia and Venezuela to Santa Cruz, Bolivia, as market oversupply reduces revenues, Reuters reported.
Iran’s First Vice President Es’haq Jahangiri and Oil Minister Bijan Namdar Zanganeh are expected to attend.
These countries are increasingly competing with exports from and prices set in the United States, which is on track to become the world’s third largest exporter of liquefied natural gas after Qatar and Australia.
That has “buyers in a better position to make contracts with shorter terms and more customized to their demand profile, without risking money in high take-or-pay clauses,” said Mauro Chavez, a senior research analyst at consultants Wood Mackenzie.
At least 25 countries are now capable of receiving LNG supplies and new re-gasification plants are expected to start operating in the coming months, giving buyers greater flexibility and increasing competition for suppliers.
Even though LNG represents only about 10% of the world’s gas trade, new suppliers are willing to offer sweeter terms to customers, roiling traditional markets and turning up the heat on some producers trying to hold onto more rigid terms.
The United States has been the most aggressive in shaking up the market, through flexible contract terms.
The United States’ rise as a force in global LNG markets and its growing gas sales to Mexico via pipeline have contributed to greater price uncertainty, according to analysts.
Attendees at the gas forum might work on “a methodology for determining gas prices in contracts”, which would promote more stability, Bolivian Hydrocarbons Minister Luis Sanchez said earlier this month.
In markets such as the Caribbean, some sellers are customizing their gas supplies by linking contracts to fuel oil prices, which is also used for power generation.
“I don’t see a situation where the price of LNG would be very high. The price of LNG will be very competitive in the mid-term and in the long run,” said Edgar Almeida, professor of the Instituto de Economia UFRJ in Brazil, flagging other market entrants such as Mozambique.

Short URL : https://goo.gl/S185jT
  1. https://goo.gl/BGrHsJ
  • https://goo.gl/drpYsb
  • https://goo.gl/d5bJSd
  • https://goo.gl/HSg33u
  • https://goo.gl/G5qwLU

You can also read ...

Libya Oilfield Halt Raises Crude Prices
Libya’s oil exports from the Mellitah terminal will be...
Russia’s energy giant Gazprom and five financial investors are already financing the project.
The Nord Stream 2 project will begin the process of attracting...
Maduro Promises to Recover Oil Decline
Venezuelan President Nicolas Maduro promised on Saturday to...
US Shale Investors Await Oil Payoff
US oil production has topped 10 million barrels per day,...
Trilateral MoU to  Build Solar Plant
Post Bank of Iran has signed a trilateral memorandum of...
Tehran Peak Power Demand Increases by  1,000 mw
Peak electricity consumption in the capital Tehran has...
Almost 1,118 km of pipelines have so far been laid in Sistan-Baluchestan Province.
In lines with efforts to provide the country's far-flung and...
SP Phase 14 Platform Sets record
The first flare stack of South Pars Gas Field's Phase 14 in...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus