Oil Cos See US Limiting LNG Exports To Keep Low Gas Price
May 03 2012 - 7:21AM
Dow Jones News
The U.S. government is likely to impose limits on exports of
liquefied natural gas in order to keep its domestic natural gas
prices low, said executives from two major oil companies with
operations in the country Thursday.
Natural gas prices in the U.S. have fallen to 10-year lows
because of a boom in production of gas trapped in shale rock. The
U.S. government, "wants to keep this surplus to keep the price
down," in the long term, said Christophe de Margerie, Chief
Executive of France's Total SA (TOT) at the Petrostrategies
conference in Paris.
Several companies are planning to build plants that would
convert some of this domestic surplus of gas into LNG that could be
shipped internationally.
"In the short term there are likely to be limited exports," said
Mark Williams, Downstream Director of Royal Dutch Shell PLC
(RDSB.LN). "It's in the hands of the government."
"They will limit exports to keep pressure downwards [on natural
gas prices] in the U.S.," said de Margerie.
-By James Herron, james.herron@dowjones.com, +44 207 842
9317
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