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Trinidad calls for global gas pricing index

Gasoil News - Published on Thu, 15 Nov 2018

Image Source: ET EnergyWorld
Reuters reported that Trinidad and Tobago's Prime Minister Mr Keith Rowley called on the Gas Exporting Countries Forum (GECF) to develop and implement a gas pricing index to ensure members receive adequate returns on the sale of the hydrocarbon. As gas supplies become increasingly available for consuming countries through Liquefied Natural Gas (LNG) imports, producers aim to secure revenue from exports by encouraging what they consider to be fair pricing. In a meeting in Bolivia last year, members of the GECF including prominent producer Qatar called for greater competition in the gas market and held talks with producing company chief executives to discuss pricing methodologies.

Mr Rowley said at the opening of GECF's 20th Ministerial Meeting in Port of Spain "Now more than ever, the need for such a global reference price is evident, in order to protect both producers and consumers alike."

According to BP's Statistical Review of World Energy, natural gas consumption grew 3 percent to 3.67 trillion cubic meters last year, pushed by bigger demand in Europe, the Middle East, Africa and Asia-Pacific. But production increased at a higher rate, underlining a buyers' market that continues stopping prices indexed to the U.S. Henry Hub from growing to levels acceptable to producers.

However, prices at the Henry Hub have recently recovered from levels below $3 per million British Thermal Unit (BTU) in the last four years to surpass $4 per million BTU in November. But the U.S. Energy Information Administration last week forecast downward pressure on prices to an average of $2.98 per million BTU in 2019.

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Posted By : Joykumar Irom on Thu, 15 Nov 2018
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