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Global gas wars to continue, to be limited by capacities — Roscongress

"One thing the new US president may focus on in foreign trade agreements may be increased purchases of American oil and gas," according to an expert analysis

MOSCOW, January 16. /TASS/. Global gas wars will continue in the coming years, though they will be limited by capacity constraints, according to an expert analysis released by the Roscongress Foundation. Meanwhile, the analysis predicts that the next 2-5 years will be dominated by natural gas.

"Gas wars will continue, though they will be limited by capacities. One thing the new US president may focus on in foreign trade agreements may be increased purchases of American oil and gas. Much will depend on how fast the country will be able to boost LNG exports," the document said.

Earlier, US President-elect Donald Trump announced his plan to impose increased import tariffs against the EU unless Brussels scales up oil and gas purchases from the United States.

"The next 2-5 years will become the era of natural gas. The policy of incentivizing production and export of gas, which is expected to be implemented with Trump as president, will eventually get rid of the surpluses in America and gradually increase the floor of the price range that was formed earlier," experts said. They predict gas prices in the US to hover around $3 per million British thermal units (MMBtu), with occasional spikes to $6..

Moreover, if the Middle Eastern conflict escalates, interruptions in gas exports are possible. However, the global influence of such interruptions will be limited as the weight of the region on the global gas market is smaller than on the oil market. Qatar accounts for around one-fifth of the global LNG trade, which also passes through the Strait of Hormuz and is therefore in the risk zone.

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