EIA: U.S. net natural gas exporter by 2018
Following suit with recent analyses by BP, Shell and others, the EIA predicted in an announcement today that the U.S. will become a major LNG exporter in the next 20 years. The EIA note confirms what many industry players have been forecasting in recent days.
The U.S. will be a net exporter of natural gas by 2018, the EIA said, and it will remain so for the foreseeable future.
Source: EIA
While Cheniere’s (ticker: LNG) Sabine Pass facility was the first LNG export facility in the Lower 48, it will not be the last. Four more facilities are currently under construction, and are expected to be completed by 2021. These five plants are expected to have a combined operational export capacity of 9.2 Bcf/d. Several other facilities, for example Tellurian’s (ticker: TELL) Driftwood LNG, are proposed or awaiting regulatory approval.
The US will remain a net importer of gas from Canada, however, according to the EIA. Total Canadian imports will decline and Appalachian gas will begin to fuel eastern Canada, but imports from western Canadian will still dominate.
Oil v. Gas
According to the EIA, one of the primary factors determining U.S. LNG export levels is the oil price.
High oil price will drive consumers to other power sources. The EIA posits that the U.S. will have an advantage in this case because domestic gas spot prices are less sensitive to global oil prices than most providers.
Source: EIA
