RPT-COLUMN-It's time to separate myths from reality in LNG: Clyde Russell

Thu Jun 26, 2014 8:00am EDT
 
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(This is a repeat of an item issued on Thursday, with no changes to text)

--Clyde Russell is a Reuters columnist. The views expressed are his own.--

By Clyde Russell

LAUNCESTON, Australia, June 26 (Reuters) - The gap between perception and myth in liquefied natural gas (LNG) is widening, with both buyers and suppliers appearing to subscribe to views that bear limited resemblance to reality.

This dynamic was very much in evidence at this week's Australian Gas Export Outlook (AGEO) conference in Brisbane, where buyers appeared confident that a wave of new projects around the world would leave them spoilt for choice of supply, and at lower prices.

Producers labour under the impression that Asian demand, led by China, is a bottomless pit that will suck up all the LNG they can make, while still earning high, oil-linked prices.

The outlook for LNG is confused and the industry isn't being well served by the lack of clarity.

It's time to try and debunk some of the myths.   Continued...