88879
World Gas Prices Increase
World Gas Prices Increase

World Gas Prices Increase

World Gas Prices Increase

Global natural gas prices are increasing for the first time in two years, with demand for the fuel advancing across the world.
Consumption of the cleanest fossil fuel is projected to grow under virtually all major scenarios, “including the most aggressive low-carbon transition scenarios”, according to a report published by Italian grid operator Snam SpA, the International Gas Union trade lobby and The Boston Consulting Group, World Oil reported.
Higher prices were driven mainly by the rising cost of crude due to its influence on oil-linked supply contracts, as well as stronger-than-expected demand for liquefied natural gas. Across the major global gas hubs, the US remained the cheapest, with prices 62% less than those in Asia and half the levels in the European Union. “The flexibility of gas and the ease with which it can be transported and stored make it an ideal partner for the growth of renewables,” Marco Alvera, the CEO of Snam, said in an emailed statement. “And gas is well on the way to becoming a renewable-energy source itself, thanks to the development of green-gas technologies.”
Demand rose everywhere, except in the US. Consumption declined there mainly due to the power sector where higher prices, pipeline constraints and greater renewables production displaced gas.
As gas prices rose, the trend toward global price convergence continued in Europe and Asia, according to the report. Spot prices, or those for immediate delivery, showed similar patterns across the major markets for LNG. Gas price levels remain higher than those for coal because there is usually no “appropriate” price on carbon and other pollutants that would drive fuel switching, the report’s authors said.
Looking ahead, long-term contracts that continue to be linked to oil may become more costly versus spot markets, where there is gas-on-gas competition, according to the report. That price spread is also likely to be highly seasonal as demand varies and due to the lack of storage in Asia, the biggest LNG market.
“Storage will likely play a more significant role during periods of peak LNG demand.”

 

Short URL : https://goo.gl/kecWGr
  1. https://goo.gl/1rEQgG
  • https://goo.gl/8XXgEC
  • https://goo.gl/9bpNBp
  • https://goo.gl/yPTUH1
  • https://goo.gl/7fB1tJ

You can also read ...

Japan to Toe US Line, Stop Iranian Oil Imports
Japanese oil distributors are preparing to stop importing...
Canada Ships Biggest Oil Consignment to China
A tanker loaded with around 514,000 barrels of oil has set...
Saudis Reap Benefit From US-China Trade War
Saudi Aramco is winning thanks to US President Donald Trump’s...
Oil Prices Set to Drop Over Excess Supply
Crude prices rose on Friday, but were still set for a weekly...
South Pars has 24 standard phases, most of which are fully operational.
The giant South Pars Gas Field in the Persian Gulf is slated...
7 Power Projects Take Off
Energy Minister Reza Ardakanian on Thursday inaugurated seven...
Oman to Finalize Gas Supply Contract by August
Tehran and Muscat are planning to sign a final agreement on...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus