Long-term growth in international gas demand will provide a market for the anticipated wave of liquefied natural gas (LNG) exports from the U.S., according to a recent report by Barclays Capital.
Barclays cited gas demand forecasts by the International Energy Agency, which anticipates growth of 1.7 percent each year until 2035, and ExxonMobil's most recent energy outlook, which sees gas demand rising by 1.9 percent per year during the same timeframe.
...The U.S. Energy Information Administration expects average growth in gas consumption in OECD [Organisation for Economic Co-operation and Development] Asia at 1 percent per year from 2008-2035 and, for non-OECD Asian countries, 3.9 percent per year.
Impact of U.S. LNG Exports on Gas Prices Can Be Mitigated
U.S. LNG exports are expected to have a modest impact on U.S. natural gas prices – with an even smaller impact on U.S. electricity prices -- according to recent analysis by Deloitte MarketPoint, a decision point solutions company focused on fundamental market analysis and price forecasting.
Deloitte concluded that LNG exports of 6 Bcf/d from the U.S. will have a weight-averaged price impact of $.12/MMBtu on U.S. natural gas prices from 2016 to 2035.