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North American gas' reversal of fortune
Shale-gas exploration success in North America is creating a new gas-export industry, writes Thom Dawson, vice-president, Kitimat LNG
Over the past 10 years, the global liquefied natural gas (LNG) market has passed through three significant turning points. The first came with a surge in demand from what were non-traditional LNG users – including parts of Europe, North America, China and India. They began building import terminals, banking on a forecast LNG supply surplus that never materialised. Today, given the high cost of export projects, the likelihood of large amounts of surplus, long-term LNG looking for a home seems extremely unlikely. The second turning point came with the rise in world oil prices in 2007-08. With many LNG producers indexing prices to the price of oil, the subsequent collapse of crude will have profound, depressive effects on the development of new liquefaction projects for years to come. A market evaporates Now the global LNG industry is contending with a third shift. The rise of North American shale-gas production will change ...Click here to continue reading North American gas' reversal of fortune
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