PETRONAS CEO warns of potential LNG price tipping point
Liquefied natural gas (LNG) buyers are currently paying between $25 and $28 per million British thermal units (MMBtu) without much resistance, according to PETRONAS CEO Tengku Muhammad Taufik. He made these remarks on Monday during the Energy Intelligence Forum in London, highlighting how the ongoing Middle East conflict has disrupted LNG supplies.
Taufik noted that while prices in this range are being accepted, a significant increase to $40 to $50 per MMBtu could prompt consumers to explore alternative energy sources. This threshold appears to be a critical point where cost considerations might drive a shift in energy consumption patterns.
The comments come as the energy sector navigates the fallout from geopolitical tensions, which have added volatility to global LNG markets. The potential for higher prices remains a key concern for both suppliers and consumers.