Global Markets

Gas must be sub-$6/MMBtu in non-OECD – Stern

The gas industry will struggle with affordability and changing markets in the coming decades, an OIES report says The gas industry will struggle with affordability and changing markets in the coming decades, an OIES report says.
By Silvia Favasuli 6 December 2017 0 28682
The Ngamia rig in Kenya. (Tullow Oil)

Gas companies operating in non-OECD countries must be able to deliver volumes at less than $6/MMBtu if they are to survive up to and beyond 2030, according to a new report by the Oxford Institute for Energy Studies (OIES). 

The report, written by Jonathan Stern – founder of the Natural Gas Research Programme at the OIES – questions the logic of suppliers that are waiting for the market to become tighter in the hope that rising prices will encourage FIDs on new LNG projects. 

“If...