The U.S. May Reshape the Global Natural Gas Landscape in the Next Few Years
After a decade of shale boom, US natural gas production has been expanding. Last year, the average daily net export of natural gas was about 400 million cubic feet, becoming the net natural gas exporter for the first time since 1957. U.S. official agencies expect that this trend will continue. The US Energy Information Administration (EIA) estimates that domestic natural gas production will increase by 9.3% in 2018 and by 3.2% in 2019. Net exports of natural gas in the United States will increase to 2.3 billion cubic feet in 2018, and will increase to 4.6 billion cubic feet in 2019. According to Victoria Zaretskaya, an analyst with the EIA in Washington, the “significant increase” in natural gas pipelines to Mexico and the increasing number of liquefied natural gas (LNG) shipments to the rest of the world will ensure that this trend will move forward. The United States currently has a Sabine Pass terminal at Louisiana-based Cheniere Energy, which is mainly used for LNG exports, and the other two will begin operations this year. Victoria Zaretskaya stated that the global LNG supply will increase substantially in the next three years. This will be mainly led by the United States, which will lead to a fundamental shift in the global sales and trading of these commodities.