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Analyst: U.S. LNG Price Likely to be Linked to Oil Price in Five Years

Ed Kelly, Wood Mackenzie’s vice president for North American gas and power, told the American Association of Petroleum Geologists that he expects U.S. LNG prices to be linked to worldwide crude oil prices within five years. According to Platts LNG Daily,
April 21, 2008

Ed Kelly, Wood Mackenzie’s vice president for North American gas and power, told the American Association of Petroleum Geologists that he expects U.S. LNG prices to be linked to worldwide crude oil prices within five years. According to Platts LNG Daily, Kelly stated that domestic supplies will insulate the U.S. gas market for the next three to four years. However, Kelly predicted that as the United States becomes more reliant on imported LNG, it will have to compete for supply in markets where LNG prices are linked already to oil. [Subscription required]

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