Islamabad- Patron Islamabad Chamber of Small Traders Dr. Shahid Rasheed Butt has said that LNG is replacing iron ore, as world’s number two commodity with its global trade projected to reach 120 billion dollars in the current year.

LNG would become most sought after commodity after oil, but it continues to face stiff resistance from rival fuel coal, he said.

In a statement issued today, he said that competition between LNG and coal will benefit masses, while decision by power producers in the developed world to use LNG or coal will be decisive for the future.

Shahid Rasheed Butt said that until 2014 buyers preferred long term LNG contracts, whose share in total trade was 73 percent, but now majority is inclined towards short-term and spot deals due to uncertainty.

He said that end of winter will hit LNG prices in Asia which is changing energy mix in many countries which will reduce demand and prices of coal. Many LNG projects in US and Australia will come online in the current year, giving extra bargaining power to buyers and pushing Russia to slash gas prices which will add to her financial difficulties, he said.