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US gas likely to get market share in Europe, but…

Oil&Gas Materials 11 August 2017 10:46

Baku, Azerbaijan, August 11

By Leman Zeynalova – Trend:

It is likely that the US will get some market share in Europe but in the foreseeable future it is not likely to be a significant one, Gal Luft, co-director of the Institute for the Analysis of Global Security (IAGS), a Washington based think tank focused on energy security, and a senior adviser to the US Energy Security Council, told Trend August 11.

“US gas exports will mainly come in the shape of liquefied natural gas (LNG) which faces tough competition in Europe from piped gas and other LNG sources like Russia and Qatar. It is likely that the US will be able to claim some market share in Europe but in the foreseeable future it is not likely to be a significant one since the US only has one operational liquefaction facility and since its prices are not as competitive,” he added.

The US is expected to export more natural gas than it imports in 2017, according to the August Short-Term Energy Outlook of the Energy Information Administration (EIA).

The US’ status as a net exporter is expected to continue past 2018 because of growing US natural gas exports to Mexico, declining pipeline imports from Canada, and increasing exports of LNG, said the report.

EIA expects exports of LNG from the country to increase.

“US liquefaction capacity continues to expand as five new projects currently under construction come online in the next three years, increasing total US liquefaction capacity from 1.4 billion cubic feet per day at the end of 2016 to 9.5 billion cubic feet per day by the end of 2019,” said the report.

Based on construction plans, EIA expects that by 2020 the United States will have the third-largest LNG export capacity in the world after Australia and Qatar.

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