Gas exporting countries are likely to delay new production projects until global gas prices show signs of a sustained recovery, Algerian energy minister Chakib Khelil said on Monday. Plentiful supply has driven down gas prices on both sides of the Atlantic slashing profits for sellers of liquefied natural gas (LNG) and pipeline gas like Russia, Qatar, Egypt, Libya and Nigeria.
Speaking at the sidelines of an energy conference, Khelil said: “I don’t see any gas producing countries just moving ahead with projects without having some visibility on gas prices long term.”
Gas prices around the world slumped in late 2008 as the global recession slashed industrial demand in key consumption centres worldwide causing a glut.
Khelil said: “It will take about three, four years for the glut to diminish.”
The International Energy Agency expects spare capacity in global gas market to possibly reach 200 billion cubic metres a year in 2015, from around 60 billion now.
Algeria is currently producing around 6 billion cubic feet (169.9 mln cubic metres) per day of gas, Khelil said.
In March, Khelil warned European buyers, who get about a fifth of their gas from the North African country, that there may not be enough gas to go around, when demand eventually does bounce back, because of strong demand in Asia. (Reuters)
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