The skyrocketing price of cooking gas at the international level has presented an opportunity for Nigeria to earn more revenue from exporting its Liquefied Natural Gas (LNG) otherwise called cooking gas.
Cooking gas prices has soared by more than 40 per cent since the start of the Israel-Palestine conflict on October 7, when Hamas attacked festival goers in Israel.
According to S&P Global Commodity Insights seen by Daily Telegraph yesterday, spot LNG prices increased to $18.345/MMBtu on October 16.
The more than 40 per cent rise in cooking gas since October 6 was attributed to the conflict between Israel and Hamas which started on October 7, and has caused geopolitical concerns, thousands of deaths and global energy disruption.
Experts are of the opinion that the ongoing global disruption is expected to keep prices high, creating an opportunity for African LNG suppliers such as Nigeria to earn more revenue.
Natural gas prices in Europe are volatile due to concerns about sufficient supply for the impending winter.
The confrontation between Israel and Hamas and Chevron’s operating difficulties in Australia have escalated market concerns. Chevron Corporation, a US oil major, has shut down the Tamar natural gas field off Israel’s northern coast. The Tamar field has a large reservoir and provides most of Israel’s energy for power generation.
Analysts opined that a protracted Tamar stoppage might impede Israeli gas supplies to neighbouring countries, particularly Egypt, a major exporter to the European market.
SOURCE: newtelegraphng.com