Kickstarting gas in transport

Interfax held a seminar on gas in transport in London in July. Peter Stewart summarises the key issues in the debate.

Rising tensions in Ukraine have not caused a supply shortage in Europe, partly as a result of low demand from Asian LNG buyers. Meanwhile, strong storage replenishment in North America has capped gains in Henry Hub futures.

• Americas

  The East-West spread in Canada narrows, backed by fundamentals

• Asia Pacific

  Winter gains expected to be limited by improved supplies

• Europe & Russia

  Winter prices will rise should the Ukraine crisis escalate

• Middle East & Africa

  Algerian hydrocarbon export revenues decline despite sufficient LNG export capacity

• The road ahead is clear for gas-fuelled transport

  The use of gas as a fuel for road freight in the UK and Europe remains in its infancy – but LNG supplier BOC sees the market taking off from next year.

• Subsidy cuts will dampen gas demand in Egypt

  Recent subsidy reforms by the Egyptian government will weigh on gas consumption in 2014, but Cairo must persist with similar measures in coming years.

• Peruvian gas plans beset by technical challenges

  Condensate blockage issues may scupper Lima’s plans to increase domestic use of gas despite Peru having ample reserves.