liquefied natural gas (LNG) price has been fluctuating in Asia recently. It shows a downward trend over the last two-three months. The recent price rise is a result of the increasing demand in China and other Asian countries like the Philippines, Vietnam, and Indonesia. Over consumption in these countries is expected to double in the coming years.
There are several factors that influence natural gas demand and cost including climate, supply and demand in the oil market, geo-supply, and politics. Geo-supply refers to the paths whereby natural gas is transported; there are two major routes through which natural gas is delivered in the world, the trans-boundary routes and the inland routes. The high price of LPG in India is because of the high quantity of consumption in China.
The price of LPG in Indonesia is influenced by the transport infrastructure in the region. The price of LPG in India may also be influenced by the political atmosphere in various countries. Natural gas is transported via pipelines in the US and in a number of countries in Europe. The purchase price of LPG also depends on the transit time. In Asia, the transport infrastructure is undergoing renovation and new pipelines have been built so that the transfer of natural gas gets easier.
In China, the government is encouraging the growth of domestic production to satisfy the rising demand for natural gas. The purchase price of LPG is expected to rise as the domestic production grows. Natural gas supplies around the globe will also be affected by the political and geothermic aspects in various countries.
The price of natural gas in the UK is Influenced by the increasing demand in countries like Ireland, Poland, Malta, Spain, Lesbos, Greece, Norway and others. In Europe, there are plans to construct a liquefied natural gas terminal so as to improve the transport of LPG between countries. There are various proposals for LPG contracts in Europe. The most important of these is the terminal supplied by E.ON Plc, the world’s biggest producer of LPG.
The purchase price of natural gas can be affected by the weather. As an example, during winter, the demand for heating and cooking is much greater than normal. This higher demand triggers the purchase price of LPG to go up, making it more expensive than before. Similarly, during summers, the demand for heating is lower than usual. A LPG plant can create a large amount of electricity, causing an increase in the price of natural gas delivery.
It should be noted that the price of natural gas in the UK is influenced by political events and other outside factors. The price of gas will decrease when the government of any nation is taking a major policy decision such as reducing the carbon emission reduction or introducing a new clean energy source. Similarly, an increasingly tight supply of oil will reduce the purchase price of natural gas in britain. Natural gas costs have decreased by about 20% in the last few years. It is expected that this trend will continue for the next few years.
Natural gas has a very low price compared to other fossil fuels, mainly because it’s a domestic commodity. It’s delivered from well sites and entails very low risk. On the other hand, oil has a very large price because it’s transported on a massive scale and involves very substantial risk. It’s believed that the purchase price of natural gas will decrease substantially in the next few years.
One reason why natural gases have a low cost is that it comes from a national resource. Liquefied natural gas is generated using a special type of pressurized water in a power condenser device. Unlike other kinds of gas, it does not have to undergo any complex processing before it can enter the market. This means that the purchase price of liquefied natural is significantly less than other kinds of natural gas.
Another reason why liquified natural gas has a low price is that it’s a highly efficient fuel. A barrel of natural gas may provide the UK with enough energy for around one year. In contrast, oil diesel, which can be used for powering vehicles costs more. Bio-fuels like vegetable oil can also be used alternatively. Even though it’s much more costly than gas from mines, it’s a cleaner fuel.
It can be assumed that future costs of liquefied natural gas will follow similar trends as other fossil fuels. If current prices are anything to go by, we can expect a price of around $2 per liter in the future. This may sound like a huge drop but in contrast to other commodity gas costs, it’s actually very profitable. Additionally, it’s a green fuel which does not harm the environment.