BP: Liquified Natural Gas soon to be traded like crude oil
(MEBG) – Liquefied natural gas (LNG) will soon be traded like crude oil rather than through spot-market or short-term deals, according to Richard Paniguian, BP Amoco’s regional president for the Caspian, Middle East, Egypt and India, reported Gulf News.
Concerning the role of Middle East he said: "It is central to our growth vision for the future. We want to go deeper into the upstream sector, expand the established aviation and lubes sector business and create a new set up for the gas economy."
BP Amoco is considering setting up a greenfield LNG project in Egypt. Markets for Egyptian LNG will probably be countries in the Mediterranean basin, including Spain, Turkey and Italy. The gas-export venture is likely to require an investment of more than $1 billion.
LNG, a fast emerging as a source of energy, is currently price-indexed to crude and is sold under long-term take-or-pay deals. Some major gas exporting states, particularly Qatar, have proposed an Organization of Gas Exporting Countries (Ogec), a parallel body to Opec.