Now that the United States is a liquefied natural gas exporter, they no longer need to import as much gas. The U.S. joins immediate neighbor, Canada, in exporting a good amount of gas, so much so, that the two countries could be influencing the price of gas very soon.
The Canadian National Energy Board have estimated that natural gas exports will shrink in numbers over the next 30 years due to the exports that the U.S. is now making.
Net imports of natural gas from Canada have been falling for years. Rising shale gas production in the United States, especially in the Northeast, is key among several factors affecting this trend.
– EIA Independent Statistics & Analysis for U.S. Energy Information Administration
Credit: Boereport
The United States has indicated that they would be building 15 LNG plants across the country that would be solidifying them as a huge player in the game for LNG exports and presiding over what the price should be.
Elsewhere, Chile will be sending liquefied natural gas Argentina’s way this week. Trade relations between the two countries have recently “warmed”, according to Reuters. Argentina and Chile haven’t exchanged gas in 16 years since exports were cut off in 2000. An industry insider said that Chile could be exporting up to 1.5 billion cubic meters of gas at $6.90 per million British thermal units.
Further afield, the liquefied natural gas industry is ignoring the traditional Asian markets that have supplied LNG to them before and are now looking for new, more expanding LNG markets, according to The Wall Street Journal. An employee involved with the International Group of Liquefied Natural Gas Importers, Vincent Demoury spoke to WSJ. He says that LNG exports have jumped up by 2.5% in 2015. Due to Asia’s declining interest in LNG, Demoury says Egypt, Jordan and Pakistan have grabbed hold of 72% of the market share that Asia is leaving behind.
Source: BOEREPORT