Grupo de Economia da Energia

Archive for the ‘LNG’ Category

Impacts of the earthquake and the japanese nuclear crisis on the international natural gas market

In LNG, natural gas on 18/04/2011 at 00:20

By Marcelo Colomer & Edmar de Almeida 

One of the few existing consensus among energy experts at the moment is the recognition that the energy crisis, in particular the nuclear crisis in Japan after the great earthquake of March 11, will tend to benefit the international natural gas market. Many experts were in rush to point out a rapid redemption of the natural gas market after nearly three years of depressed prices. In fact, the price of natural gas and oil suffered a sharp drop from the 2008 crisis, remaining at a very low level, even after the recovery of price of oil in 2009. This expected price recovery in the gas market is considered as great relief by sector agents, although a more careful analysis of the current context of the market reveals that recovery may take longer than expected. Leia o resto deste post »

Recent development and trends in pricing in the global LNG market

In LNG, natural gas on 29/11/2010 at 00:52

By Edmar de Almeida

The global Liquefied Natural Gas (LNG) trade has experienced an enormous expansion in the last two decades. This expansion was accompanied by an important evolution in pricing and types of contracts for LNG trade. Traditionally, LNG trade was supported by long-term contracts with a pricing trying to link the price of LNG to the competing fuels (oil or its byproducts). Until now, this sort of trade prevails in the LNG markets in Asia and parts of Europe.

The liberalization of gas markets in North America and some European countries allowed the appearance of new rules on pricing of natural gas. With the gradual increase of gas-gas competition, some short-term and spots markets were developed, allowing the use of new indexes for natural gas trade. Concurrent with the appearance of gas spot markets in North America and Europe, we have witnessed a fast development of the LNG market in the Atlantic Basin. The regasification capacity of the Atlantic Basin is now approaching half of global capacity. United States and United Kingdom, as an example, had stopped importing LNG in the 1980s, and returned to import LNG in 2000.

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