Supply, pricing uncertainty cloud LNG industry
The speed — and uncertainty — of changes in global LNG supply, demand and pricing are weighing on buyers and sellers, said speakers at an international gas conference in London.
"There is no industry that is as volatile and cyclical as the LNG business — maybe pig farmers," was how Philip Olivier, president of Paris-based GDF Suez Global LNG, put it at the Gastech 2012 conference held Oct. 8-10.
"We find ourselves in very uncertain times as an industry," said Andrew Walker, vice president for global LNG at U.K.-based BG Group.
LNG buyers made clear at the conference that they want lower prices for the fuel. Producers were clear they couldn't go too low. And many speakers made clear that nothing is clear about future LNG pricing. Regardless of what buyers may want, there is no cheap natural gas left in the world, said Fereidun Fesharaki, chairman of FACTS Global Energy, a Singapore-based international consulting firm.