LNG Exports from North America and Development of Gas Shales beyond North America will Lead to Gas Price Convergence
Wednesday, Jan 25, 2012
Research and Markets has announced the addition of GlobalData 's new report "LNG Exports from North America and Development of Gas Shales beyond North America will Lead to Gas Price Convergence" to their offering.
“LNG Exports from North America and Development of Gas Shales beyond North America will Lead to Gas Price Convergence”
Successful commercial development of shale gas has led the US to be on the verge of becoming a Liquefied Natural Gas (LNG) exporter. The rapid increase in domestic natural gas production in the US has not only reduced its dependence on LNG imports but also has led to a reduction in natural gas prices in the US. The prices at Henry Hub index have been significantly lower than the gas prices in the UK (traded at National Balancing Point - NBP) and in Japan (indexed to Japan Crude Cocktail - JCC). In light of the recently signed LNG export contracts by Sabine Pass Liquefaction, LLC (Sabine Liquefaction), developer of Sabine Pass Liquefaction terminal in the US, LNG exports from the US to countries in Asia and Europe will begin in 2015. The prices for these exports will be indexed to Henry Hub prices, which are lower than the prices in the markets that will receive these supplies. It is expected that shale gas developments in Europe and Asia will also start contributing to natural gas production by this time, making more natural gas available in the market. Consequently, it is expected that the natural gas prices in the US, Europe and Asia will start converging around this time, driven by the excess natural gas available in the market.
Source: Business Wire
To access over 2,500 of the latest oil projects from across the world visit Projects OGP for free trial today
Bookmark with: