The shale gas revolution in North America has altered market dynamics to the degree that the region will no longer be dependent on LNG imports.
North America is set to emerge as a major LNG supplier in the international market. Similarly, Australia is expected to become a key supplier by 2017 due to recent LNG capacity additions.
Demand however will rise in the Asia-Pacific, which is seeing strong economic standing. In particular, Japan is likely to depend on imports to meet all its LNG needs, while China and India will also prove significant end-user markets. This region expects to become a supplier hub, as several long-term LNG supply contracts in the Asia-Pacific are nearing completion.
New analysis on the LNG market from Frost & Sullivan finds that the market had a supply of 32.42 billion ft3 in 2014 and estimates this to reach 69.26 billion ft3 in 2025. By 2025, the LNG demand from Asia is projected to be approximately 23 billion ft3.
Participants in the market are being challenged despite the availability of the gas. Producers in the U.S. have been obstructed by delays in getting LNG export permits. At the same time new infrastructure capacity in Australia has increased the costs of LNG. Price hikes in a market with more than one supplier will be a competitive disadvantage.
Increased funding to make LNG trade possible will translate to new investments to build liquefaction and re-gasification facilities around the world.
Adapted from press release by Joseph Green
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/04062015/north-america-become-major-lng-supplier-894/