High LNG prices are beginning to have the effect of encourag- ng Japanese utilities to switch to coal-fired generation and could result in reduced gas demand, according to Tokyo Gas vice-president Shigeru Muraki. LNG prices have soared over the past 18 months, as a result of a squeeze in the short-term market and high crude prices in long-term oil-linked contracts, which has hurt Japanese buyers. And prolonged high LNG prices could lead to power generators switching to cheaper alternatives.
展开▼
