LNG Exports from US Will Grow Says Analyst

Press Release
Sunday, August 12, 2012

LNG Exports: 'Not Huge, Not Soon,' but with geopolitical impact forecasts market analyst.

Ken Medlock, a Baker Institute energy fellow at Rice University in Houston, said the United States will be "lucky to see more than 1 Bcf/d" of exports 10 years from now. "I don't think it's going to be a huge number," he told Natural Gas Intelligence (NGI).

"Here's the deal, though, and this is what I think is the most important thing from a policy perspective and everything else: when you have that artery open so there's this opportunity, all you really need is just the threat of arbitrage to begin to see markets blink."

Linking U.S. gas markets with the world will cause Asian and European market players to take gas storage positions in the United States "because what you have when you have both import and export capability in the U.S. is a direct link to all the storage we have in this country," Medlock said. "Once that begins to happen, it creates not only spatial arbitrage opportunities, but intertemporal [opportunities]. So you can trade basically based on seasonal price movements. And that will inject a lot of liquidity into the global market.

Even if North America becomes a sort of gas storage lung, inhaling and exhaling with the seasons, don't look for long-held global LNG trading practices to crumble soon. That will take at least a decade, Medlock said. "It's not going to happen fast." One of the important things that has to happen in the Asian market is development of a continental pipeline system, particularly in China, Medlock told NGI.

To access more of NGI's interview with Ken Medlock, click here.


 


 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

WOW at USMMA

The United States Merchant Marine Academy Hosts 7th Annual Women on the Water Conference. Last week, The United States Merchant Marine Academy (USMMA) in conjunction with the U.

Methanol Powered Ferry Launched in Baltic Sea

Swedish ferry operator Stena Line has announced that it has converted the Stena Germanica to run on methanol, an industry first.   The company spent $24 million on converting the ship to methanol.

U.S. Oil Train Traffic mostly from Midwest to East Coast

U.S. oil trains delivered more than 13.5 million barrels of crude oil from the Midwest to the East Coast in January, according to government data that gives a first

Finance

Sea Star Continues Puerto Rico Investments

Sea Star Line, LLC has entered an agreement to on-hire another barge to add to its current service package for shipments from Jacksonville to Puerto Rico.   The

Rand Logistics Announces Debt Refinancing

Rand Logistics, Inc. announced today that it has closed a $170.0 million revolving loan facility which refinanced approximately $102.0 million of the company's

Baltic Sea Freight Index Edges Higher

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, edged higher on Monday as rates rose for vessels across all segments.

LNG

Methanol Powered Ferry Launched in Baltic Sea

Swedish ferry operator Stena Line has announced that it has converted the Stena Germanica to run on methanol, an industry first.   The company spent $24 million on converting the ship to methanol.

Rotterdam Gate LNG Terminal Expansion Started

Dutch gas network operator Gasunie and tank storage service provider Vopak said on Monday that the expansion of their Gate liquefied natural gas (LNG) terminal in Rotterdam has begun.

Becker Marine at Electric & Hybrid Marine Expo

Becker Marine Systems product presentation at the dutch Electric & Hybrid Marine World Expo will put a strong focus on environmentally-friendly technology for the

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Offshore Oil Pipelines Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2874 sec (3 req/sec)