SHELL: Natural Gas Prices Should Double By 2015

natgas

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.

Read the full interview on FT.com

SEE MORE: 11 events that cause dramatic fluctuations in natgas prices

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