European LNG buyers need to provide clear price signals to compete on global basis
Qatar Liquefied Gas Co, a producer also known as QatarGas, said European natural gas prices must rise if the continent is to be sure of receiving adequate supplies of the fuel in the future.
At the European Autumn Gas Conference in Berlin today, Alaa Abu Jbara, marketing director at QatarGas, said: “LNG will remain a globally competitive market. European LNG buyers will need to provide clear price signals in order to attract and retain long-term LNG imports.”
He said: Buyers may need to reconsider pricing gas at free market prices.
Qatar, the world’s biggest producer of liquefied natural gas, sells most of its fuel under long term contracts linked to the price of oil, with the rest sold on spot gas markets. Oil has risen 62 percent since the end of 2008, reaching $87 a barrel today, while US gas has dropped 17 percent and UK gas has fallen 16 percent.
He said: “European LNG buyers must be able to compete on a global basis for their required supply.” The current “depressed” gas pricing environment won’t encourage the development of new LNG production projects.oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.