Gains ahead for gas companies as LNG price crack 65% in 6 months

Lower prices should benefit all the players in the gas distribution value chain

Liquefied Natural Gas (LNG) prices have been falling sharply over the last few months on short term demand concerns. Short-term LNG FOB (free on board) prices are down 65 per cent over the past six months to $4.25 million British thermal units (mmbtu), close to the three-year lows. While some analysts feel that the slump is due a fall in imports from China, which is largest importer of LNG globally, some feel that the large capacity additions are likely to keep the LNG market subdued over the medium term as well. 

The fall in LNG prices however is positive for