For the longest time (about a decade or so) the LNG world was a certain place. The stuff itself was hard to get and expensive,…
In the mid Nineties, the UK transformed its gas market unleashing liberalization. Competition was about to set customers free, set traders loose and set the scene…
European natural gas prices are a shambles. The ones say that one can’t make a living under those conditions as the price is to low for comfort.
The others say that it’s to high for gas to be competitive. Who is right? An off the beaten path analysis.
A couple of things were conveniently forgotten by those driving the portfolios. First gravity – everything that goes up eventually will come down. European energy utilities and gas traders deluded themselves into believing that the Bonanza would be never ending.
LNG regasification has been a no-business for pretty much all of its history. The terminal owners/operators are pretty happy with this state of affairs as their life was real simple so far. Dont move and take in guaranteed returns – that was the mantra. All this will have to change if the LNG industry is serious about going normal.
Many would be buyers are not very nimble when it comes to secure volumes of LNG. No surprise here, as many are behaving like the BORG from Star Trek. We are the BORG – resistance is futile. But is that really a recipe for success?
To those outside the nebulous Natural Gas world, LNG is the stuff that evokes phantasies of miracle trades and fast riches. LNG has been dubbed a commodity many times over the last 10 years alone. But is the status deserved? A demystification.
Ten years ago, the European Union embarked on its own journey to Oz by reforming its energy markets. It successively broke the chains of hundreds of millions energy customers from monopoly utilities dictatorship and changed the very nature of the energy business. Suddenly, everyone wanted to be a trader.