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Expanding U.S. Natural Gas Exports Would

Blog Posts

  • A New Horizon for U.S./China LNG

    The Gulf of Mexico is making history once again. Containing the only liquefied natural gas (LNG) export terminal in the lower 48, US LNG has made its way across the globe to South America, India, the Middle East, and Europe. And now, for the first time since 1973, U.S. LNG is heading to China. Although the destination may change, LNG experts at Genscape predict China as the final destination, proving that the expanded Panama Canal is officially providing U.S. Gulf Coast Terminals a leg up against competition. In fact, the Panama Canal allows LNG tankers from the Gulf Coast to reach Asia markets in just 20 days – compared to 31 or 34 days beforehand – cutting valuable distance, time, and costs down. Starting back in February, U.S. LNG started to target all areas of the globe, including Asia which holds two-thirds of the global LNG market. China, in particular, was a key objective as the country’s rising demand continued to beg for LNG imports. And even though Alaska has been exporting LNG to Asia since 1969, there hasn’t been any direct shipments to China for decades. Now, as the U.S. transforms into the world’s third-largest LNG supplier in five Read more

  • The Threat of Iran

    For over a century, the Middle East and fossil fuels have been intertwined. . And with its seemingly never ending supply of energy resources, this area of the globe has been the center point for the world’s energy supply. However, the Middle East’s power over the energy market is dwindling as foreign countries look elsewhere, like the United States, for a stable and reliable source of energy. But with Iran expected to re-join the global market within the next few years, competition may soon heat up. Despite sanctions that were first imposed by the United States in 1979 and then the United Nations in 2006, Iran’s LNG production continued to grow. Now, after sanctions have been lifted, Iran is gearing up to export from its largest LNG field, South Pars, which holds nearly 40 percent of Iran’s gas reserves. And that timeline is quickly approaching as over half of the 24 phases which makes up South Pars have been completed. The United States should rightfully be concerned.   Iran, like the U.S., is hoping to take advantage of the demands in the COP21 agreement that outlines natural gas as a main source of fuel for participating countries. The two countries are Read more

  • The EU’s Goals Show Their Need for US LNG

    At a time of uncertain global gas demand, the European Union hopes that new efforts to secure a more stable energy system for its member states will bring confidence to third party country suppliers around the globe – starting with the United States. During talks on the Transatlantic Trade and Investment Partnership (TTIP), the EU proposed an energy agreement that would allow the union to import natural gas from the U.S. without having to obtain a U.S. Department of Energy license for the shipments. This ambitious step is part of the EU’s new energy plan where the goal is to “attain secure, sustainable, competitive and affordable energy for every European.” This proposal should not come as a surprise to the U.S. government or natural gas suppliers who are eager to enter Europe at a faster rate. When the first shipment of American LNG arrived in Portugal, many thought that the natural gas would keep arriving. But because of the EU’s lack of transport capability after the gas arrives at the import terminals and the decrease in demand from Asia, cargoes aren’t flowing as freely as expected. However, these obstacles will not be existent in the near future, as the EU Read more

  • A Step in the Right Direction

    The United States has not seen a broad energy policy bill since the Bush administration – an error that is threatening the country’s energy dependence and security due to a lack of modernization. Thankfully,   yesterday the Senate voted to enter into a formal conference with the House in order to negotiate their two competing energy policy bills. But unfortunately, hesitations on reaching a successful compromise remain strong with Senate Democrats, since the House’s energy bill contains language unfavorable to their energy goals. Luckily, Senator Maria Cantwell (D-Wash.), ranking member on the Energy and Natural Resources Committee, agreed to go to conference, promising to rein in the House’s energy bill and remove any language that President Obama would veto. However, while movement toward compromise is a victory, certain policies vital to America’s energy growth should not come under fire during these discussions. Margo Thorning, of the American Council for Capital Formation elaborated on this specific provision in a statement: “The announcement that both chambers will finally move to conference on energy policy modernization legislation is both welcome and long overdue. Both the Senate and House have recognized the necessity of having an energy policy that reflects the United States’ position as Read more

  • An Advantage for U.S. Gulf Coast Terminals

    With over nine approved projects waiting to come online, the United States Gulf Coast is poised to become one of the world’s leading hubs for liquefied natural gas (LNG) exports, rivaling any other center in the world market. And even though multiple events over the past decade have changed the natural gas playing field, developments continue to unfold solidifying the U.S. as a leader in the LNG market. First, in 2006 the creation of new technology jump-started the U.S. shale boom and pushed the U.S. into the world of LNG as a new market player. Following this discovery, other countries also began flooding the world market as demand from Asian countries began to rise after the 2009 Fukushima nuclear disaster. Since then, the flood of available LNG resources into the market has increased so much that prices have started to decline. Specifically in the past year, the price of LNG has lowered by 40 to 50 percent around the globe excluding Canada and the U.S., and has started to equalize across all regions. Driven largely in part by export terminals coming online in Qatar, Papa New Guinea, Algeria, and Australia, this trend puts more pressure on LNG export projects in Read more