CERAWeek: Sempra's Darcel Hulse doesn't know

Darcel Hulse, CEO Sempra LNG is rather frank: “Just to give you an opinion from the beginning, I really don’t know. I don’t know how it will turn out.”
Hulse said right now natural gas is a regional commodity and needs some sort of “universal pricing signal” other than the cost of delivery to become global.
“And there has to be enough liquidity, or trade, to balance supply and demand,” Hulse said. “Price is the distinguishing factor that creates the balance.”
Hulse said looking at the trends in how Europe’s major natural gas pipelines are operating (from Algeria, the former Soviet Union and Norway) the flows are decreasing and increasing with the seasons.
“The growing trend here is pipelines are being called upon to have greater seasonality swings than ever before. It may be because LNG is becoming a baseload supply,” he said.
For Russian gas giant Gazprom, 55 percent of the gas goes to domestic needs. The rest goes to Europe and accounts for a huge portion of Gazprom’s revenue. “Can they afford to lose those markets?” Hulse asks. In other words, global LNG is a real threat to Gazprom.