U.S. Shale Gas Revolution Expands LNG Export Opportunities

U.S. SHALE GAS REVOLUTION EXPANDS LNG EXPORT OPPORTUNITIES

One of the most complex elements of the U.S. shale gas revolution concerns the future of U.S. LNG exports. Like other components of the domestic natural gas industry, significant events in the LNG export market occurred in the past year. Overall optimism continued to grow as several major export projects received U.S. Department of Energy (DOE) approval to move ahead. On a global level, the potential of U.S. capacity reaching world markets reshuffled international sourcing agreements.

The 2014 Strategic Directions: U.S. Natural Gas Industry report reveals an increase in the expected volume of LNG exports. A greater understanding of the production capacity of domestic and Canadian resources became widespread through the industry, and DOE approval of more projects helped drive this shift.

Further shaping the market was the August 2014 move by DOE to finalize a change in its LNG export license application process. The new process begins with an environmental review by FERC prior to DOE approval. With each environmental review requiring a roughly $65 million to $100 million investment per project, it is likely that only serious projects with adequate funding will attempt to secure an LNG export permit.

Download the full report to learn more about how U.S. LNG exports are helping to shape the global natural gas market.

 

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