Doha: The sharp drop in global oil prices has caused the value of natural gas to also depreciate, the Qatari energy minister said on Tuesday.
"Energy markets are interconnected, and we can see the effects of the oil price drop affecting gas too," Mohammed al-Sada told reporters in Doha.
There was already a "strong degree of conversion of gas spot prices between different regions," he said on the sidelines of the 16th ministerial meeting of gas exporting countries.
Qatar is the world`s largest exporter of liquefied natural gas, in addition to its exports of crude oil.
Gas is sold either through long-term contracts or on spot markets.
The Henry Hub Natural Gas Spot Price dropped 10 percent to $4.12 per million BTU (British thermal units) between June and November, according to the US Energy Information Administration.
The price of oil has plummeted by almost 50 percent since June, dented also by OPEC`s recent decision to hold its crude output ceiling in an oversupplied market.
Sada was upbeat about the prospects for the gas market, however, saying both supply and demand were increasing.
"We believe that gas has a strong advantage not only as a source of energy but a source of a cleaner energy. And gas demand is likely to be further augmented," he said.
