Atlantic Basin LNG US Market Dynamics

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • LNG is becoming increasingly important as an alternative fuel source
  • SUMMARY
• ANALYSIS
  • The Atlantic Basin will compete for Pacific Basin LNG
    • LNG is traded globally in two major markets - the Atlantic Basin and the Pacific Basin
  • LNG will enter a period of rapid growth in the medium term
  • Europe and North America are the main Atlantic Basin LNG consumers whilst the major producers are African and Caribbean
  • LNG plays an increasingly important role in the US
  • LNG is a niche in the Atlantic Basin natural gas market
  • High LNG demand influences investment and policy
    • High LNG consumption is fuelling high import terminal investment and overcapacity
    • High LNG consumption is fuelling high import terminal investment and overcapacity
    • High LNG consumption is fuelling high import terminal investment and overcapacity
  • To spur investment, LNG regulation has become decentralized and less intrusive
    • There is no single federal or state agency with sole LNG oversight responsibility
  • The Atlantic LNG market will become more competitive
    • Short-term contracts and spot trading will gradually dominate Atlantic LNG transactions
    • Energy market liberalization is a primary reason for the decline of long term contracts
    • Spot markets enhance the competitiveness of the Atlantic Basin LNG market
    • The LNG spot market is influenced by the price differentials in different markets
    • Although based on natural gas prices, LNG prices are somewhat less volatile
• APPENDIX
  • Definitions
  • Methodology
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: US LNG Projects
  • List of Figures
    • Figure 1: Global LNG regional markets
    • Figure 2: Historic and projected LNG growth in three regions
    • Figure 3: 2006 Exports of Atlantic Basin Producers
    • Figure 4: 1996 - 2020 Actual and expected growth in natural gas and LNG consumption in the Atlantic Basin
    • Figure 5: Expected US Atlantic Basin LNG consumption 1996 - 2020
    • Figure 6: 2006 US LNG imports by source
    • Figure 7: LNG import terminals are all located along the industrialised eastern US seaboard and oil producing Gulf Coast
    • Figure 8: Increasing LNG imports will not keep up with expanding terminal investment
    • Figure 9: Forward prices Henry Hub versus NBP (2008-13)
    • Figure 10: US Price of Imported Gas and LNG 1999-2006