Business Price of Liquefied Natural Gas Crashes by 50% - Report

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LequteMan

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Just as global oil prices suffered a terrible fall last year, a report by Wood Mackenzie says the spot price of Liquefied Natural Gas (LNG) also crashed from a peak of over $20 per million British Thermal Unit (mmbtu) in February 2014 to less than $10 per mmbtu in November 2014.

According to Wood Mackenzie's annual review the LNG industry which celebrated its 50th birthday in 2014, may have matured, but still not short of surprises.

According to the report, lower demand from Asia contributed to the crash in LNG spot prices last year by about 50 per cent.

“But the big surprise was that Asian LNG demand was much lower than expected. Demand in emerging markets, like China, failed to grow to the extent anticipated and demand in the established South Korean market fell considerably,” Wood Mackenzie's Principal Analyst, Giles Farrer said.

“Prices dropped in the summer as new supply from PNG LNG and reduced Asian demand left the Pacific basin long supply. Then fell further - as Brent oil tumbled from $110 per barrel in August to below $60 per barrel in December,” Farrer added

#Nigeria #LNG #Oil #WoodMackenzie

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