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Achtung cybernuts: Facts about global LNG prices & our gas supplies

In Energy, Infrastructure on 03/07/2018 at 10:56 am

Phillip Ang (Cybernuts go to financial expert who raised money for CPF lawsuit CPF class action: Phillip Ang’s “reply’ to fellow cybernut then no picture, no sound*: like his buddy Lim Tean: A disgraceful chamber of horrors?,)TRELand and TOCLand and allied cyberspace and social media allies are shouting that since S’pore uses natural gas to generate electricity and LNG prices are weak, there’s no need for electricity prices to rise when oil prices rises as per the automatic formula.

What they don’t know or not telling us, if they, do is that most of our natural gas supply is not in form of LNG but in the form of gas from nearby Indon and M’sian fields that come here via pipes (like water). This gas is priced off the oil price because the fields would not have been developed otherwise all those years ago. Why don’t the cybernuts blame PAP for not having foresight to wait for LNG?

In those days, only after long-term contracts priced off oil from users were signed, were fields developed. These contracts are still in place. Why don’t the cybernuts blame PAP for not negotiating shorter contracts or ensuring that the price of gas be priced in a different way?

Until very recently, major gas fields were not developed until long-term contracts priced off oil were in place. This is changing surely but slowly. Whatever, a lot of global LNG are still priced off the price of oil because the contracts were signed a long time ago. Surely but slowly, there’ll come a day when the spot price for LNG sets the price for deals, but don’t hold yr breath.

With enemies like the cybernuts who peddle rubbish analysis eg on water and electricity, the PAP doesn’t need friends.

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*Will Lim Tean & Phillip Ang help out fellow cybernut?

They didn’t

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  1. […] – Thoughts of a Cynical Investor: Achtung cybernuts: Facts about global LNG prices & our gas supplies […]

  2. I will suggest to cut them some slack in this case. I use to remember that MSM used to mention our elec prices not linked to oil prices

    • Can u give some references? I’ve been following this topic for many yrs and have yet to see what u claim is MSM reporting that there’s no link.

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