• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 1 day Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 14 hours The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 4 days What China is Learning from Russia's War in Ukraine and its Consequences
How Will NATO’s Nordic Expansion Impact Georgia?

How Will NATO’s Nordic Expansion Impact Georgia?

Sweden and Finland’s NATO bid…

Alberta Thrives Amid Oil Rally

Alberta Thrives Amid Oil Rally

Alberta’s economy is booming as…

Even The World’s Top LNG Exporter Thinks Natural Gas Prices Are Too High

Natural gas prices have reached unhealthy levels for both producers and consumers, Saad al-Kaabi, Qatar’s Energy Minister and CEO of Qatar Petroleum, the world’s top LNG exporter, said on Thursday, a day after spot liquefied natural gas prices in Asia hit a new record high.

“While natural gas prices are an outcome of basic market fundamentals including supply and demand, the current price levels observed in global markets are unhealthy for both producers and consumers,” al-Kaabi said, as carried by Bloomberg, after a virtual dialogue with European Energy Commissioner Kadri Simson today.  

Last month, al-Kaabi said on the sidelines of the Gastech industry conference in Dubai that the surging gas prices were partly the result of underinvestment in the industry, also driven by the attempts at fast energy transition.

“There’s a euphoria around the energy transition that’s forcing companies not to invest,” al-Kaabi said. 

“There is a huge demand from all our customers, and unfortunately we cannot cater for everybody. Unfortunately, in my view, this is due to the market not investing enough in the industry,” al-Kaabi said at the event in September, as carried by Reuters

Back then, when spot LNG prices in Asia were “only” $20 per million British thermal units (mmBtu)—a record for September ahead of the winter heating season—the Qatari energy minister said he hoped the high prices wouldn’t last because they would not be good for consumers.

“We don’t want these high prices, we don’t think it is good for the consumers. We don’t want $2 and we don’t want $20, we want to have a reasonable price that is sustainable,” al-Kaabi told Reuters at the end of September.

This week, the worsening global energy crisis sent Asia’s spot LNG prices soaring by 40 percent on Wednesday, as a cargo for delivery into North Asia in November was priced at as much as $56/mmBtu—a record high that beat the previous record from last week of $34.52/mmBtu.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads from Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News