World Benefits From U.S. Liquefied Natural Gas Exports
in Freight News 12/01/2016
"After Qatar and Australia, the U.S. could easily become the world’s third-largest LNG supplier by 2020. We have a great advantage over other LNG exporters because ..."
But, Asia overall seems even more distant today for U.S. LNG because gas prices worldwide have plummeted. This is especially true in Asia because prices are more heavily linked to crude oil than in Europe, and oil prices collapsed to 11-year lows to end 2015. “JKM prices, a maker for delivery in Asia, have fallen by two-thirds since the 2014 peak. February 2016 delivery cargoes are going for $7 per million Btu.” ...
While there is a global LNG (and fossil energy overall) glut, this will surely be eroded over time. Gas is becoming even more crucial in our post COP21 world (see here). The U.S. stands in a very wonderful and unique position: we can help supply natural gas to the world, which legendary energy thinker Vaclav Smil calls “Fuel for the 21st Century.” It’s very telling that the industrialized nations seeking to cut GHG emissions most are continually turning to gas. The coal-based developing world is sure to follow suit. Replacing coal with gas reduces CO2 emissions by 40-50%.
"...Australia and Canada, the other emerging free market LNG exporters that are highly valued by importers, will also face problems with their more expensive Greenfield projects. Australian LNG confronts cost overruns that have surpassed $30 billion. Projects off the BC coast in Western Canada are facing long delays amid rising global competition, environmental pushback, and potential rising carbon taxes, possibly missing out on $23 billion by 2020."