Long Term Contracts

Few factors will have a greater effect on future U.S. natural gas production—or gas pricing—than the degree to which U.S. LNG exporters are successful in penetrating Asian, European and other markets. The dozen liquefaction/LNG export facilities now under construction along the Gulf and East coasts could demand up to 7 Bcf/d, or about one-tenth of current U.S. production. It’s possible, though, that demand could be far less if U.S. LNG can’t compete successfully, or several Bcf/d higher if exporter success leads to development of additional projects. Today, we review our latest Drill Down Report on the international LNG market and how U.S. exporters may fare.