Platts: BP LNG chief does not see European gas prices dropping despite US LNG exports
BP does not see natural gas prices falling in Asia or Europe as a result of LNG imports from the United States, the head of the oil major's LNG strategy group said Tuesday.
Some participants in the gas market have talked about the arbitrage opportunity to export LNG from the US, which is rich in gas from production out of shale formations, to Europe, where gas is selling at around $10/MMBtu, or to Asia, where it sells for $15/MMBtu, compared with $2/MMBtu in the US.
But Andrew Walker, head of LNG strategy at BP Group, sees "one direction" for LNG prices outside of the US: "inexorable tightening." MORE