Oil-linked prices for liquefied natural gas are not rational given the diverse sources of supplies coming from North America and Australia or via pipeline from Russia, the chief executive of Japan's largest utility, Tokyo Gas, said Wednesday.
Henry Hub-linked prices are expected to fetch between $10/MMBtu and $11/MMBtu when North American LNG exports begin as early as 2015, said Shigeru Muraki at the 17th International Conference and Exhibition on Liquefied Natural Gas in Houston.
He added this was based on the assumption that Henry Hub would remain between $3/MMBtu and $5/MMBtu.
