Gas
prices rise as majors delay LNG projects
The Trinidad Guardian
Port
Spain
Petroleumworldtt.com
01 21 07
Chevron
Corp and Royal Dutch Shell Plc are delaying construction
projects from Australia to Nigeria, threatening
to drive natural gas prices higher for years to
come.
None
of the world’s biggest energy companies approved
developments last year to increase production of
liquefied natural gas, which helps heat homes and
run power plants from Tokyo to Boston. The main
reason is the cost to build LNG plants has tripled
in six years, according to Bechtel Group Inc, the
biggest US contractor.
Natural
gas prices are three times higher than during the
1990s and consumption of the fuel will outpace the
1.6 per cent annual gain in energy demand for the
next 25 years, according to the International Energy
Agency. Gas is also becoming more popular because
it emits 29 per cent less carbon dioxide than oil
and 45 per cent less than coal burned in power stations.
“Costs
are going up and they’re going up far faster
than anybody expected,” said Andy Flower,
a UK-based consultant to the LNG industry and a
former BP Plc executive. He forecasts that the world
LNG shortage will last until at least 2011.
Natural
gas in New York soared from an average $2 per million
British thermal units in the 1990s because consumption
increased, oil costs rose and domestic supplies
diminished. US gas production peaked in 1973, and
demand since then has held steady, increasing the
need for imports.
Natural
gas for February delivery rose 6.7 per cent to $6.601
per million British thermal units on the New York
Mercantile Exchange last week. On December 13, 2005,
the futures rose to a record $15.78.
The
Trinidad Guardian
Wednesday 17th January, 2007
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©2006 Trinidad Guardian. All Rights Reserved.
