Photo: rockershirt via flickr
Shell CEO Peter Voser believes natural gas prices will double by 2015 as industries ramp up replacing coal with the alternative fuel. In a recent interview with the FT, Voser said the company projects prices to reach $4-$6 per million British thermal units for 2014-15. June Henry Hub contracts currently stand at $2.65.
Prices will stay low in the short term but “would see a recovery . . . in the second half of the decade.”
“As coal is replaced by gas in electricity generation, and gas in transportation takes off,” prices will rise, he said.