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US LIQUEFIED NATURAL GAS RE-EXPORTS

US Liquefied Natural Gas Re-Exports

Study Released September 19, 2011

August 2011

Exploration and development of US shale gas resources over the past half decade has transformed the natural gas industry, placing downward pressure on the North American natural gas price, and deterring liquefied natural gas (LNG) imports. While the Henry Hub spot price is expected to remain at depressed levels, the rest of the world will experience a strengthening of natural gas prices, as the share of natural gas in the world’s energy mix continues to increase. This has prompted the owners of several underutilized LNG import terminals in the lower-48 states to consider modifying existing facilities to allow for the export of domestically produced natural gas in the form of LNG. However, natural gas liquefaction capabilities will not be available before 2015, at the earliest. Until then, re-exports of foreignsourced LNG are the only way to access more lucrative markets overseas, where the price of natural gas is often linked to the price of crude oil through long-term contracts..... Download full report.

August 2011