The Managing Director of the Cambridge Energy Research Associates (CERA), Michael Stoppard has said that there will be sharp increase in LNG usage over the next two years, and that a price war between LNG and coal could lead to the temporary closure of coal mines.
"Over the next 18 to 24 months, LNG capacity will increase by 30 percent," Mr Stoppard said.
According to CERA, gas prices are falling due to a combination of factors – recession, the build up in new supplies of LNG and the discoveries of new gas reserves in the USA. Natural gas prices in the US were US$12.61 against February's price of US$4.54.
The gas market is tipped to see an increase of LNG output from Indonesia, Russia, Yemen and Qatar.
