Venture Global Chief Downplays LNG Price Volatility
Energy executive remains optimistic about long-term stability despite supply disruptions affecting global LNG markets.
Tokyo: The chief executive of Venture Global LNG has said the recent fluctuations in global liquefied natural gas prices triggered by tensions in the Middle East are expected to be temporary.
Speaking at the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo, CEO Mike Sabel noted that current market instability is unlikely to persist for long despite disruptions affecting major LNG suppliers.
Industry estimates suggest nearly 20 percent of global LNG supply is currently offline after facilities operated by QatarEnergy halted production amid the ongoing conflict involving the United States, Israel and Iran. Qatari Energy Minister Saad al-Kaabi recently indicated that restoring normal export levels could take several months.
Sabel acknowledged that markets are experiencing sharp fluctuations but stressed that the company remains confident about long-term fundamentals. According to him, strong demand and additional supply capacity coming online are expected to support stable liquefaction prices in the future.
Market data showed that the average price of LNG for April delivery to Northeast Asia was estimated at about $19.50 per million British thermal units, down from $22.50 the previous week. Prices for May delivery were estimated at roughly $18.90 per mmBtu, according to industry sources.
Meanwhile, Venture Global confirmed it will move ahead with the second phase of its CP2 LNG project in Louisiana. The expansion is expected to add around 10 million tonnes of LNG capacity to the initial four million tonnes planned under the first phase.
Sabel said the two phases of the project could begin producing energy as early as next year, a development he believes will contribute to easing supply pressures and stabilising fuel prices in the global market.
