Related Articles
Forward article link
Share PDF with colleagues

Vitol warns on LNG production shut-ins

The trading house fears that US liquefaction plants may join the list of capacity on the side lines next year

A market’s price is the function of the cost of the most expensive supply required to meet demand. A low price should indicate at least the potential that some of the highest cost supply is ‘out of the money’ and should either shut-in to balance the market or—if it continues producing—utilise storage infrastructure to wait for an oversupplied market to rebalance. So, what is happening in the LNG and global gas markets, where consistently low prices suggest the highest cost producers may be facing this choice? Petroleum Economist spoke to Pablo Galante Escobar, global head of LNG trading at commodity trading heavyweight Vitol, to get his view.  We currently have low prices, but we are not s



{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Muscat faces up to oil twilight
15 June 2021
The Omani government’s focus is reluctantly shifting to managing output decline
Indebted KrisEnergy set for liquidation
15 June 2021
Disappointing Cambodian exploration results seal Singaporean independent’s fate
India needs tax and regulatory consistency – Cairn
15 June 2021
Rules for new prospects should be extended to mature fields, according to the domestic producer
Sign Up For Our Newsletter
Project Data
PE Store
Social Links
Social Feeds
Featured Video