There are currently 9 liquefied natural gas (LNG) export terminals being built in the U.S. in Texas, Louisiana, and Maryland. These are set to be in use in the next three years.
With the shale boom came a glut of natural gas supply, and the U.S. is now poised to become a major LNG exporter…
We just need to find some committed buyers.
Although it may take some time to gain traction in Asia and some European countries, places like Spain and the U.K. would be easy targets for potential U.S. LNG shipments.
It also turns out that Turkey will be open for LNG exports as well. Turkey’s transition from oil to natural gas as a major energy source has driven demand up.
Below you can see the rise in Turkey’s natural gas consumption from 2001 to 2013, and that domestic production only covers about 10% of those energy needs.
Thanks to the supply glut in the U.S., natural gas prices on the Henry Hub are about one-third that of European prices, and about one-quarter of the price of natural gas in Japan.
Turkey currently gets most of their natural gas supplies from Iran and Russia at much higher prices than the U.S. will have to offer. In 2021, when our LNG export terminals are up and running, and Turkey’s contracts with Iran and Russia run out, the U.S. will be a more viable, and affordable option for natural gas.
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