A really good question. I, or we, have not really analyzed it through yet, but if oil is expected to three-fold in this worst-case scenario, I would say that prices of LNG could more than six-fold from their current levels, i.e., to the range of 16-20USD. However, if the worst-case scenario starts to materialize, it is possible (or even likely) that prices of LNG in the world, and especially EU, and the U.S. will diverge, because I am suspecting that in that case energy becomes a national security issue, which means that world markets fracture.
Oh, yes. This was unclear. I mean that it leads to a situation ("fracturing"), where world markets of LNG do not settle prices across the globe, but that there are regional prices. That is, that there's US price, European price, Russian price, etc. In this case we see that, e.g., the U.S. price will be lower than that of Europe.
Hi Marek.
A really good question. I, or we, have not really analyzed it through yet, but if oil is expected to three-fold in this worst-case scenario, I would say that prices of LNG could more than six-fold from their current levels, i.e., to the range of 16-20USD. However, if the worst-case scenario starts to materialize, it is possible (or even likely) that prices of LNG in the world, and especially EU, and the U.S. will diverge, because I am suspecting that in that case energy becomes a national security issue, which means that world markets fracture.
Best,
Tuomas
Oh, yes. This was unclear. I mean that it leads to a situation ("fracturing"), where world markets of LNG do not settle prices across the globe, but that there are regional prices. That is, that there's US price, European price, Russian price, etc. In this case we see that, e.g., the U.S. price will be lower than that of Europe.
Tuomas