Gas price set to cool as supply heats up
Source: SMH, 23 June 2014
The three-year rally in liquefied natural gas is cooling as Asia-Pacific supplies jump and demand slows from Japanese utilities preparing to restart nuclear reactors.
LNG shipped to north-east Asia next northern winter may be sold at the lowest price since 2012 for that time of year, when demand typically peaks, according to traders and analysts. Exxon Mobil and BG Group are bringing new supplies to Asia before at least four projects start in 2015, including the first US exports.
Prices have doubled since the Fukushima disaster in March 2011, as utilities turned to gas to compensate for the loss of the atomic plants. Japan is preparing to restart at least two of 48 nuclear reactors shut in the wake of the earthquake and tsunami that hit the country.
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