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AP
Dropping pressure: gas exporters’ woes

The Gas Exporting Countries Forum starts its biennial summit today in Tehran in sombre mood. Gas is increasingly used as a transport fuel (notably in ships); it can be liquefied for export; chemists have found ingenious ways of making it into pricey products like waxes and lubricants. It is the cleanest, most flexible fossil fuel for power generation too (though barring a carbon tax, it can’t compete with coal). But the golden age of gas is benefiting consumers, not producers. The GECF’s members (Nigeria, Indonesia, Qatar, Russia and others) account for 42% of global gas output—a hefty slice, but not enough to set the rules, or the price. Non-member America, awash with natural gas thanks to the shale boom, will start exporting LNG next year, fostering a more liquid and competitive market: bad news for old-style pipeline exporters who like long-term contracts and fixed prices. A gas OPEC? No chance.

Nov 23rd 2015
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