Time of Cheap Gas is Coming to an End.
LNG Intelligence: As crude oil prices have spiraled down in the past months, Russia’s highly dependent economy on oil is already suffering. Recently, a dozen of leading natural gas exporters convened in Moscow to strengthen cooperation between them towards consuming countries and in concerns that they might turn into an OPEC-style cartel.
During the meeting, Russia’s Prime Minister Vladimir Putin said that the world financial crisis, and the rising costs of gas operations will lead to high natural gas prices. He added that the costs of exploration, production and transportation of gas are going up, which means that the industry’s development costs will skyrocket, and the time of cheap gas is surely coming to an end.