Gas Exporting Countries Convene As Global Buyers’ Market Rises

Gas Exporting Countries Convene As Global Buyers’ Market Rises

Santa Cruz, Bolivia: Top officials of major gas producing countries gathering this week in Bolivia will face a harsh reality: expanding supplies of the fuel are giving global buyers greater sway over purchase and contract terms.

This week’s Gas Exporting Countries Forum (GECF), which aspires to be the OPEC (Organization of the Petroleum Exporting Countries) for natural gas suppliers, is expected to draw energy ministers from Qatar, Iran, Russia and Venezuela to Santa Cruz, Bolivia as market oversupply reduces revenues.

These countries increasingly are competing with exports from and prices set in the United States, which is on track to become the world’s third largest exporter of liquefied natural gas (LNG) after Qatar and Australia.

That has “buyers in a better position to make contracts with shorter terms and more customized to their demand profile, without risking money in high take-or-pay clauses,” said Mauro Chavez, a senior research analyst at consultants Wood Mackenzie. Read More…

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