Oil’s Slide Triggers LNG Drop as Indian Demand Seen Rising - Bloomberg Business

Oil’s Slide Triggers LNG Drop as Indian Demand Seen Rising - Bloomberg Business:



"Oil’s slump is set to extend the biggest drop in liquefied natural gas costs in five years, spurring demand in emerging Asian economies.



LNG prices in Japan, the world’s biggest buyer of the fuel, will probably plunge 35 percent in 2015 and Indian costs will decline 33 percent, according to Energy Aspects Ltd., a London-based consultant. Costs in Asia will this year average below $10 per million British thermal units for the first time in four years as new projects in Australia and the U.S. boost supply through 2016, Bloomberg New Energy Finance said.



Most LNG in Asia is linked to crude costs with a time lag of several months, so Brent’s 49 percent drop in the second half of 2014 hasn’t fully filtered into prices. Global demand for the gas chilled to minus 170 degrees Celsius (minus 274 Fahrenheit) will rise 9.8 percent this year amid increased imports by India and southeast Asia, after climbing 0.5 percent in the first nine months of 2014, according to Sanford C. Bernstein."



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