Liquefied natural gas (LNG) price has been fluctuating in Asia recently. It reveals 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 next several years.
There are lots of factors that influence natural gas demand and price such as 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 Earth, the trans-boundary paths 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 affected by the transportation infrastructure in the region. The price of LPG in India can also be influenced by the political setting in various countries. Natural gas is transported via pipelines in the US and in several countries in Europe. The price of LPG also depends on the transit time. In Asia, the transportation infrastructure is undergoing renovation and new pipelines have been built so that the transport of natural gas gets 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 price of natural gas in Britain is Influenced by the Rising demand in countries like Ireland, Poland, Malta, Spain, Lesbos, Greece, Norway and Many 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 various suggestions for LPG contracts in Europe. The most significant of them is the terminal supplied by E.ON Plc, the world’s biggest producer of LPG.
The price of natural gas can be affected by the weather. As an example, during winter, the demand for cooking and heating 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 generate a large amount of electricity, causing a rise in the purchase price of natural gas delivery.
It should be noted that the purchase price of natural gas in the UK is influenced by political events and other outside factors. The purchase price of gas will decrease when the government of any nation is taking a significant policy decision such as reducing the carbon emission reduction or introducing a new clean energy source. Likewise an increasingly tight supply of oil will decrease the price of natural gas in the UK. Natural gas costs have decreased by about 20% in the last couple of years. It is anticipated that this trend will continue for the coming years.
Natural gas has a very low cost compared to other fossil fuels, mainly because it’s a domestic commodity. It is delivered from well sites and entails very low risk. On the other hand, oil has a very high price because it’s transported on a large scale and involves very substantial risk. It’s believed that the purchase price of natural gas will decrease substantially in the coming years.
One reason why natural gases have a low price is that it comes from a domestic resource. Liquefied natural gas is generated by using a special sort of pressurized water in an energy condenser device. Unlike other kinds of gas, it does not need to undergo any complicated 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 is a highly efficient fuel. A barrel of natural gas may provide the UK with enough energy for about one year. In contrast, petroleum diesel, which is used for powering vehicles costs much more. Bio-fuels like vegetable oil can also be utilised as an alternative. Although it is a lot 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 cost of around $2 per liter in the future. This may sound like a big fall but compared to other commodity gas prices, it is truly very profitable. Additionally, it is a green fuel that does not harm the environment.