At the moment it is not quite right to talk about "the average gas price in the world markets"

19 june 2014 | RuBALTIC.Ru

Expert of the Analytical Center Alexander Golyashev, commented on the statement given by the Prime Minister of Lithuania Algirdas Butkevičius that Norwegian company “Statoil” will supply liquefied natural gas to the Klaipeda terminal, cheaper than the average price in world markets.

Alexander Golyashev
Alexander Golyashev
Department for Research Studies

With regard to this particular statement made by the Lithuanian Prime Minister, there is a high probability that liquefied natural gas from “Statoil” will be more expensive than pipeline gas from “Gazprom”, otherwise this would have been clearly stated”, - said Alexander Golyashev to the Analytical portal RuBALTIC.Ru. According to the expert, American gas on European market “will be competitive, but to a certain limit. This corresponds to the forecast made by the International Energy Agency in 2012 in which it is stated that the price of American LNG in Europe will be in 2020 at about 12 dollars per MBTU (or $ 430 per thousand cubic meters), which is expensive for the average European standards. Therefore, from an economic point of view, it is unlikely that serious volumes of gas will be supplied from North America to Europe.