A global glut of natural gas could result in a sharp drop in prices, the Russian Oil Minister, Alexander Novak, warned at the Gas Exporting Countries Forum (GECF), according to Reuters.
Alluding to the oil-price crash of 2014, Novak stated, “[t]he current excess supply of natural gas brings risks of… of entering into the same crisis that affected oil prices.”
Over the past decade, higher production and increasing liquefied natural gas (LNG) exports have caused natural gas prices to drop by over 80%, the news agency reports.
Technological advances in the US have enabled the country to become the top natural gas producer in the world, according to Reuters. Its LNG industry is now seeking to compete in Russia’s traditional European markets. Last week, Poland’s state-owned energy company signed a five-year deal for US LNG, US media reported.