FPRI’s Anna Mikulska Interviewed by Biznes Alert
Dr. Anna Mikulska from the Center for Energy Research Baker Institute for Public Policy at Rice University in Houston talks about how active gas policy can support the development of the liquefied gas market, for example in Poland.
BiznesAlert.pl: The thesis about the imminent development of LNG exports is based on the assumption that there will be investments in new export capacities. Is this real in the conditions of a growing oversupply?
Anna Mikulska: Expectations of the International Energy Agency and other organizations may never come true, but show a certain trend. Such analyzes allow companies to determine the factors affecting demand. If the biggest players are now investing in LNG, it means they anticipate a long-term increase in LNG demand and interest in their gas. From their point of view, it pays off. These companies are looking beyond 2020, into the 2030s and 2040s.
Is this the nature of this business?
Investors in deep-sea oil and gas exploration also do the same. They are now investing despite cheap oil, because they expect a profit in ten to fifteen years. As for LNG, investments from the USA, Qatar and Australia have been already well on the way. It is also worth looking at developing countries like China and India, which also count on LNG as part of their energy mix. They will still use a lot of coal, but they are investing in the gas sector. The Middle Kingdom is developing not only import at home, but also has invested in export terminals in Indonesia, Russia and Australia, to name a few. This shows that they want to ensure secure access to liquefied gas for the years to come.