Luxembourg, 08/06/2015 (Agence Europe) - Energy and Climate Commissioner Miguel Arias Canete confirmed at the meeting of European energy ministers in Luxembourg on Monday 8 June that the Commission would bring forward a strategy for liquefied natural gas (LNG) by the end of the year.
A first ministerial exchange of views took place on Monday on this matter, centred on best use of LNG supply infrastructure and storage.
“We wondered whether supply infrastructure and storage capacities should be discussed from a purely commercial point of view or rather with regard to security of supply. And it is here that the points of view of the member states differ”, said Council President in office and Latvian Economy Minister Dana Reizniece-Ozola.
“Over the last few years, the price of LNG has been relatively high, very high even, compared with gas transported by pipeline. But last year, LNG imports rose sharply and the price of the gas improved”, she went on.
Ministers also discussed current capacity levels. “In some place, they are maybe too high and in others, such as Croatia, not high enough. While the price of LNG remains a bit high compared with general prices on the gas market, it's true that over-supply in LNG can have a positive effect in lowering prices for gas supplied via pipelines”, she said.
“New global players, such as Australia and the United States, have several destination markets and go where prices are best. 30% of LNG traded is done in the short term, which means that prices are more closely associated with market signals and are tightening. This is an indication that a clear strategy is needed for LNG”, commented Commissioner Canete. “If we develop LNG capacities, we see prices fall. We have to give thought, too, to the issue of storage - whether or not we should go down the same track as for oil”, he said (our translation throughout). (Emmanuel Hagry)