The traded volume of liquefied natural gas (LNG) will exceed $120 billion in the current year, the experts at Goldman Sachs inform. Thus, the LNG traded volume will rocket so that this raw material will take the second place by sales after oil beating iron ore.
Competitiveness among producers will start increasing inevitably as LNG spot shipments rise and buyers move from long-term contracts, Goldman Sachs chief commodity analyst Jeffrey Currie believes.
Taking into account the difference between contract and spot prices of LNG, connection of its value to oil will lose its attractiveness eventually. LNG will have a chance to become a usual commodity which price is defined by factors important precisely to it, the banks’ specialists mention.
Delivery prices for the cryogenic liquid changes in respond to dynamic of black gold prices. However, the US LNG prices depend on the value of natural gas reference contracts on the Henry Hub.
In the third quarter of 2015, spot prices of gas delivery to Asia will decrease to $6.25 a million BTU and will rise to 7$ in 2016.
In 2014, after a slump in oil prices, gas spot prices dived by 45% to $7.6 a million BTU, according to the data of March 2.
