Analyst: U.S. LNG Price Likely to be Linked to Oil Price in Five Years
Posted on Apr 22, 2008 in Markets and Competition | Comments Off on Analyst: U.S. LNG Price Likely to be Linked to Oil Price in Five Years
Ed Kelly, Wood Mackenzie’s vice president for North American gas and power, told the American Association of Petroleum Geologists that he expects U.S. LNG prices to be linked to worldwide crude oil prices within five years. According to Platts LNG Daily, Kelly stated that domestic supplies will insulate the U.S. gas market for the next three to four years. However, Kelly predicted that as the United States becomes more reliant on imported LNG, it will have to compete for supply in markets where LNG prices are linked already to oil. [Subscription required]