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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ABS' Tikka Elected Foreign Member of NAE

ABS, a provider of classification services to the global marine and offshore industries, announced the election of ABS Europe and Africa Division President Dr.

Ellicott Takes On Rohr-Idreco Line in Latin America

Ellicott Dredges LLC & Rohr-Idreco Dredge Systems, which are owned by Ellicott Dredge Enterprises, LLC, has  announced that Ellicott's Latin American Sales Manager,

Beacon Finland Appoints Rio Marine for US Support

Beacon Finland, a maritime-related firm engaged in naval architecture, marine engineering and equipment, has appointed Rio Marine to service its JAK-ATB coupling systems in the U.

Finance

Grounded Giant Chinese Boxship Freed

One of the world's largest container ships has been freed from a mud bank after running aground almost a week ago near Germany's largest port of Hamburg, German authorities said on Tuesday.

Hempel’s Dynamic Brings Saving for Lemissoler

Global shipmanagement company, Lemissoler Navigation, via its affiliated and managed company Frontmarine Co. Ltd, has achieved significant fuel savings from coating its newbuild 58,

QP, Chevron Ink Offshore Moroccan Deal

Qatar Petroleum has reached an agreement with Chevron Morocco Exploration Ltd., a subsidiary of Chevron Corporation, to acquire a 30% participating interest from

LNG

Hess sells Shannon LNG Terminal

New York-based energy company Hess has sold Shannon LNG, a proposed gas-import terminal in County Kerry, Ireland’s Sunday Independent has reported.   The newspaper

LNG Bulker Cements Thordon's Green Future

Sea trials aboard Greenland, the world’s first LNG-fuelled short-sea dry bulk vessel, have validated the performance of Thordon Bearings COMPAC propeller shaft solution,

Norway will be Lithuania's 2016 Top Gas Supplier

Lithuania will import more gas from Norway than from former sole supplier Russia in 2016 after developing infrastructure to support liquefied natural gas (LNG) imports,

 
 
Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1069 sec (9 req/sec)