The Oil Drum

A recent article in the UK's Sunday Times warns that, although UK natural gas prices are already at historically high levels, they are set to increase by 25% by next winter. Part of the problem is that the UK is increasingly dependent on imports of liquefied natural gas (LNG), and this winter (2007/08) Japan has been paying twice as much for spot LNG cargoes as the UK has. The implications looking forward are that to secure spot LNG cargoes in future, residents of the UK should be prepared to pay much more for their gas. Meanwhile, in its latest weekly podcast, Platts explains why there are essentially three seperate markets for LNG supplies, and media reports suggest that Russia will be soon be hiking its gas prices for exports to Europe. In other words, barring economic meltdown, natural gas prices are set for double digit increases, annually.

This is the second posting of the ODAC (Oil Depletion Analysis Centre) bi-weekly newsletter.

Topics include:

Peak Metals; Gas Supplies: Turkmenistan - Russia - Ukraine; Natural Gas Exports - Azerbaijan; LNG Imports – China and Japan; US Energy Information Administration Forecasts; Economy - UK Trade Deficit; BBC Peak Oil Documentary; Shortage of Oil and Gas Workers; Biofuels; UK Oil Depletion Conference