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Wednesday, September 20, 2017

US LNG Going Global

Posted by June 20, 2017

  • © Anatoly Kolodey / Adobe Stock photo
  • Graph: American Action Forum
  • © Anatoly Kolodey / Adobe Stock photo © Anatoly Kolodey / Adobe Stock photo
  • Graph: American Action Forum Graph: American Action Forum

The U.S. liquified natural gas (LNG) market is ripe with opportunity, according to American Action Forum (AAF).

 
"When coupled with the tension surrounding Qatar (the largest exporter of natural gas in the world), this makes U.S. LNG production a very attractive option," said Kimberly VanWyhe is the Director of Energy Policy at the AAF.
 
In 2016, LNG exports from the U.S. totaled 184,141 million cubic feet with a value of roughly $564 million.
 
Currently the U.S. is exporting LNG to 23 out of 35 countries that can accept LNG transport vessels, a sharp change from this time last year. Last week, Taiwan received their first  shipment of U.S. LNG, with more countries expected to be added to the list in the future. 
 
Another report by AAF estimates that the cumulative nominal value of natural gas exports between 2016 and 2040 will be $1.63 trillion.  
 
AAF said it determined this value by applying EIA projections of natural gas production and consumption to projections of natural gas prices, as well as LNG price estimates we derived from applying a coefficient to oil prices (LNG prices are commonly indexed to oil).
 
AAF research estimates the annual trade value of natural gas exports will reach $31.8 billion annually by 2020, which would reduce our trade deficit by 7.3 percent. By 2026 the annual trade value would be $51.8 billion, and by 2040 it would be $123 billion. 
 
United Statesnatural gasoil prices