Gas prices in 2009: largest west organizations' projection

Azerbaijan, Baku, Dec. 26 / Trend , A.Badalova / The projections of international organizations and companies on prices of energy carriers including gas were considerably lowered as a result of the prolonged and deep world economic recession.

In accordance with the projection of the U.S. Energy Information Agency (EIA), Henry Hub spot price in at the NYMEX stock exchange (New York) in 2009 in average will comprise $ 218.75per 1,000 cu m. As a result of 2008, under projections, the average fuel price will make up $320.95against $250.95per 1,000 cu m in 2007.

According to the report by EIA, natural gas prices, which have declined from a monthly average of $ 457.1 per Mcf in June, reflect the impact of increased domestic production, the weak economy, and lower oil prices. The increase of the general natural gas demand in the States makes up 0.5% in 2008. In 2009 the fuel demand in the industrial sector will decline by 2.4%.

EIA considers the world gas prices in 2010 will increase to $248 per Mcf, in 2015 - to $287.7, in 2020 - to $346.56, in 2030 - to $483.74. The increase of prices will make up 2.9% since 2007 to 2030.

According to the projection of one of the largest American JPMorgan bank, the average gas prices in 2009 will be $216.6 per Mcf against $267.14 that previously was announced by bank.

The maximum gas prices in 2009 will be observed in the fourth quarter -$234.65 per Mcf and the minimum - in the second quarter -$198.55. In the first and third quarter of 2009 the fuel price will make up $ 216.6. 

According to JPMorgan, as the result of 2008 the average gas price will comprise $ 321.29 per Mcf against $330.315 that bank previously reported. The gas price in the fourth quarter in 2008 will total $ 231.04 per Mcf.

EIA projections on gas prices from 2009 to 2030 (in $/1mln british thermal unit (BTU))

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