Shale gas to affect LNG market

By Godang Sitompul

The shale gas revolution in North America will eventually affect the dynamics of gas pricing in the world and Asia especially if the US decides to export and flood Asia?s liquefied natural gas (LNG) market with its shale gas.

?If there is an export of LNG (from shale gas) from the US, then there will of course be an impact on the gas prices, unless the gas purchase prices have been under contract,? SKK MIgas Head of Marketing Division Popi Ahmad Nafis told petromindo.com.

At present, the abundant supply in North America, especially the US and Canada has pushed down the gas price there to below US$3 per mmbtu. In contrast, LNG prices elsewhere remain high, with some contracts setting the price as high as $17 per mmbtu.

Editing by Dadan Wijaksana