<No Naked Short Selling => No Short Selling at All => No Future Energy? The Oil Drum DrumBeat: September 20, 2008>

24 comments on Of pipelines and the future

Comments can no longer be added to this story.

| Show without comments | PDF version

drillo on September 21, 2008 - 7:40am Permalink | Subthread | Parent | Comments top

"If all the projected LNG terminals are built..."

I really don't understand the present LNG hype. Everybody believes that LNG can make Europe independent from Russia. But can anyone tell me which are the gas sources that can be delivered to Europe at a competitive price that are not already delivered by pipeline?

A few hints to shorten your list:
North Africa: already pipelined to Europe
Nigeria: pipeline planned (possibly co-financed by Russia)
Central Asia: pipelines via Russia, competing with new pipelines to Asia, so far no progress of pipeline plans to Indian Ocean
Malaysia etc.: much closer to the traditional (and well paying) east asian LNG markets
Americas: already short of gas

So which LNG exportation sources are left to bring down prices?
I bet: none.

Comments can no longer be added to this story.
DaveMart on September 21, 2008 - 7:45am Permalink | Subthread | Parent | Comments top

In addition to the countries which hoped to increase supplies of LNG given in my link, Qatar is a major player:
http://www.tehrantimes.com/index_View.asp?code=175879
tehran times : LNG project delays may cut 100 million tons of supply

Form the link though it is clear that supplies will fall well short of previous projections by around 100 million tons by 2013, around the consumption of Japan and Korea combined.

The bottom line is that there will not be the LNG available to supply all the import terminals being built.

Comments can no longer be added to this story.

24 comments on Of pipelines and the future

Comments can no longer be added to this story.

| Show without comments | PDF version