U.S. says its LNG prices to stay competitive in long term

LJUBLJANA, June 5 (Reuters) - U.S. prices of liquefied natural gas (LNG) being shipped to Europe will remain competitive with Russian piped gas prices over the long term, U.S. energy secretary Rick Perry said on Wednesday.

Perry, attending an international political and business conference in Slovenia, said: “This idea that somehow ... LNG can’t compete with pipelined gas is just false.”

“The U.S. supply, the U.S. reserves of natural gas are massive. The ... pressure downward on price of LNG is going to continue,” he told reporters on the sidelines of the conference.

“Even if Russia wants to continue to subsidise their gas prices, at some point in time they will run out of gas to subsidise,” he added.

Perry also said the United States continued to have the option of imposing sanctions on the Nord Stream 2 pipeline project from Russia to Europe, but declined to elaborate.

“We think it’s a bad idea to rely on a single source of energy and that’s basically what you get with the Nord Stream 2, and Europe is seeing first hand that Russia will cut your gas off,” he said, adding most EU countries were against the pipeline being finished. (Reporting by Marja Novak; Editing by Mark Potter)