FORT ST. JOHN – With news this morning that according to sources, Petronas is weighing options to possibly sell stakes and exit the Canadian LNG market, the FSJ for LNG founder says Petronas can still do well in the Canadian market.
In an email to Energeticcity.ca, Alan Yu, the groups founder says there is a light at the end of the tunnel despite the rumors. He also says he had been hearing rumors of this, but hoped there was no truth to it.
“This is the cost of the Federal Government delaying decisions. The waiting period certainly took its toll.
There is light at the end of the tunnel though. OPEC has agreed to limit its production and this will lead ultimately to higher oil prices. Japan consumes 30% of the world’s LNG production and sets the LNG price at Japan’s landed oil price. This means that LNG price will also follow.”
Yu also said that oil prices are hitting major oil producers hard and hurting the bottom prices. He says that they will eventually have to find a way to increase oil prices from the supply side.
“Major oil producers are hurting at these bottom prices and it is inevitable that they will find a way to increase their prices from the supply side.Saudi Arabia has been funding their government with their foreign reserves for almost two years and they will be bankrupt in less than 2 years if they continue losing money.Venezuela is likewise suffering on several levels so they will welcome any price control from the supply side.”
“All is not lost Fort St. John. The best is yet to come.”