INTERVIEW-Asian LNG buyers will need new sources if U.S. gas goes to Europe -CPC

Вторник, 25 марта 2014 15:35 MSK

* Taiwan's CPC sees LNG imports flat at 12.5 mln tonnes in 2014

* Expects LNG imports to rise to 20 mln T/yr within 10 years

By Jane Chung

GOYANG, South Korea, March 25 (Reuters) - Asian buyers of super-cooled gas in tankers will need to look for new supply out of Australia and East Africa if the Russia-Ukraine crisis prompts European utilities to go after U.S. gas exports, said the chairman of Taiwan's state energy company.

Europe has grown increasingly worried about disruption to a major fuel source due to uncertainty over the future of Ukraine after Russia's move to annex the Crimean peninsula. About one-third of Europe's gas comes from Russia, with 30-40 percent of that coming via pipelines across Ukraine.

Moscow has in years past cut gas supplies amid regional disputes, and that possibility has spurred European leaders to look for ways to be less dependent on Russia, including looking to the United States gas exports expected to start up next year.

But the possibility of large volumes of U.S. gas exports heading to Europe is unlikely due to the higher prices commanded in Asia, the chairman of Taiwan's CPC Corp told Reuters in an interview on Tuesday.

"Unless European countries are willing to pay the higher prices, it won't happen," said CPC Chairman Sheng-Chung Lin, who was in South Korea for an international gas conference.

Asian spot LNG prices LNG-AS are running around $18 per million British thermal units (mmBtu), while European LNG cargoes go for around $10 per mmBtu.   Продолжение...