Bloomberg expert explained why the price of LNG will continue to fall

The global energy market is undergoing a restructuring, speaking from experts who are optimistic about the future of gas. Taking into account the environmental policy The EU and the US are most likely right skeptics who claim that the gas sector (not to mention oil or coal) is on the way to complete extinction. Therefore, the chances that prices for blue fuel in the form of LNG will continue to fall are only increasing. Bloomberg senior reporter Steven Stapczynski explains the reasons for this inevitable phenomenon.

In his opinion, quotations for liquefied gas around the world will continue to decline because China, which mining companies around the world rely on, has begun to produce even more coal. In this way, Beijing is trying to satisfy its almost insatiable energy appetites. In addition, Japan will launch several new and restored NPP reactors within six months.

News for the United States, Qatar and African suppliers are exacerbated by the fact that once a large gas consumer, European industry shows no signs of recovery and shows a low level of growth in demand for raw materials.

Simply put, not only the EU, but also Asia is becoming a bottleneck in the US mining industry, whose gas production costs are higher than those of other players in a specific market. Exports are growing (the number of volumes contracted is obligatory), and demand is decreasing due to an increase in stocks, which drives prices down. With rising freight rates for LNG carriers, a once-profitable business is turning into a loss-making business.

According to the reporter, even the planned "ban" of Russian LNG by the European Commission will not change the situation for the better for overseas suppliers. The reasons are too varied. On the side of the crisis, there are a lot of factors contributing to the growth of negative phenomena, against two or three aspects stabilizing the situation in favor of order.

Overall, the expert predicts that the point of no return for the entire LNG industry is approaching. The rapid development of infrastructure for processing and exporting raw materials contrasts sharply with the stagnation of the mining sector, which is in decline primarily in the United States. The downward trend in futures prices only makes things worse.
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  1. strange guest Offline strange guest
    strange guest (Strange Guest) 2 July 2023 09: 21
    All is well, but just what are WE going to do in this situation with huge LNG plants? Both operating and under construction? Or is it, as always, something else?
  2. Flight Offline Flight
    Flight (voi) 2 July 2023 18: 58
    When the price of gas falls in the world, an expert appears in the Russian press explaining the impossibility of this in Russia.
  3. Valera75 Offline Valera75
    Valera75 (Valery) 2 July 2023 19: 08
    Taking into account the environmental policy of the EU and the United States, the skeptics are most likely right who claim that the gas sector (not to mention oil or coal) is on the way to complete extinction

    For what? Or is there an alternative such as wind turbines, solar panels and hydrogen? All this is still in negligible quantities, and something else is not even used because it is not on the market.
  4. Alex Rosenberg Offline Alex Rosenberg
    Alex Rosenberg (Alex Rosenberg) 3 July 2023 05: 21
    How so? Here, as always, everything is a khan to everyone. Russia won the economic confrontation. Only some pluses, as Medvedev says after hibernation (As he said, they will buy gas for 5000). Great boon for the development of the ruling regime. Yes, and at the front, Bakhmut was now taken by everyone in fear. A throw to Berlin is possible (but we will fight for it seriously). But in fact, gas is leaving and NATO is expanding with oil. the economy is slowly falling. war is deadlocked. an arms race begins and in the absence of factories it is not realistic to win. Only peaceful negotiations are possible. And I have no doubt they will. And huge money will go from Russia to the restoration of Ukraine. I'm sorry that this is happening, but the people and GDP say one thing, so you'll have to pay.
    1. Nelton Offline Nelton
      Nelton (Oleg) 3 July 2023 10: 14
      Quote: Alex Rosenberg
      the economy is slowly falling. ... in the absence of factories ...

      Oh, don't rush to bury the Russian economy.
      Yes, and there are factories, and new ones are being introduced / built.
      (although sometimes the old ones are closed - the same is not without it).
      And the country has enough funds and intelligence (which is especially surprising), even against the background of the NWO, to develop infrastructure and development.