Liquefied natural gas (LNG) price has been fluctuating in Asia recently. It shows a downward trend over the past two-three months. The recent price rise is due to 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 lots of 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 main routes through which natural gas is delivered in the world, the trans-boundary paths and the inland routes. The high cost of LPG in India is due to the high quantity of consumption in China.
The price of LPG in Indonesia is affected by the transport infrastructure in the region. The price of LPG in India can also be influenced by the political atmosphere in different countries. Natural gas is transported via pipelines in the US and in several 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 becomes easier.
In China, the government is encouraging the growth of domestic production to meet 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 factors in a variety of countries.
The Cost of natural gas in Britain is Influenced by the Rising 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 in order to increase the transfer of LPG between nations. There are many proposals for LPG contracts in Europe. The most important of these is the terminal provided by E.ON Plc, the world’s largest producer of LPG.
The purchase price of natural gas may be impacted by the weather. For instance, during winter, the demand for heating and cooking is a lot greater than normal. This increased 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 generate lots of electricity, causing an increase in the purchase price of natural gas delivery.
It must be noted that the purchase price of natural gas in the UK is affected by political events and other external factors. The price of gas will decrease when the authorities of any country is taking a significant policy decision such as reducing the carbon dioxide reduction or introducing a new clean energy source. Likewise an increasingly tight supply of oil will reduce the purchase price of natural gas in the UK. Natural gas prices have decreased by about 20 percent in the past couple of years. It’s 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 is a domestic commodity. It is delivered from well sites and involves very low risk. On the other hand, oil has a very large price because it is transported on a massive scale and involves very substantial risk. It’s believed that the price of natural gas will decrease substantially in the next few years.
One reason why natural gases have a low price is that it comes from a national resource. Liquefied natural gas is produced by using a special sort of pressurized water in a power condenser device. Unlike other kinds of gas, it doesn’t have to undergo any complex processing before it can enter the marketplace. This means that the price of liquefied natural is significantly less than other kinds of natural gas.
Another reason why liquified natural gas has a low cost is that it is a highly efficient fuel. A barrel of natural gas can supply the UK with enough energy for around one year. In comparison, petroleum diesel, which can be used for powering vehicles costs much more. Bio-fuels like vegetable oil can also be used alternatively. Even though it’s a lot more expensive 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 fall but compared to other commodity gas prices, it’s actually very profitable. In addition, it is a green fuel that does not damage the environment.