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LNG Exports from North America and Development of Gas Shales beyond North America will Lead to Gas Price Convergence
GlobalData, Jan 2012, Pages: 5
LNG Exports from North America and Development of Gas Shales beyond North America will Lead to Gas Price Convergence
Summary
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.
Scope
- The report highlights the possible impact of expected LNG exports from North America and development of gas shales beyond North America.
- The report provides key highlights of natural gas supply from gas shales development outside North America.
- The report contains a discussion on the expected price convergence of gas in the long-run in different regions across the globe.
Reasons to buy
- To be aware of the possible impact of increasing gas supplies from the US leading way for gas price convergence in the long run.
- To keep abreast of gas shale developments across the globe could support global gas price convergence.
Keywords
LNG, exports, North America, Global, Gas Shales, Shales, Gas Price Convergence, Price Convergence, Sabine Liquefaction, Sabine, GAIL, Gas Natural Fenosa, BG, Basic Energy, henry hub
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