Forbes: India's Big Gas-Price Win Chills The Global LNG Industry

If the price of oil fell by 50% overnight it’s a fair bet that shock-waves would be felt around the world.

The same cannot be said for liquefied natural gas (LNG) because there were no shock-waves last week despite a 50% price cut in a key Asian sales contract and despite LNG playing an increasingly important role in the profits of big petroleum producers such as Chevron Corporation which is within weeks of switching on its giant Gorgon LNG project in Australia.

The two events are deeply significant and while they have been expected both are being played down by everyone involved because what’s happening is both embarrassing for the companies involved and potentially quite expensive. MORE