Natural Gas Exports: Realistic Market Response and Political Uncertainly
Jack O. Nutter
Nutter & Harris, Washington D.C.
With natural gas trading in the U.S. for about $2 per million British thermal unit, there is considerable interest by producers, gas transporters and investors to dramatically increase exports of natural gas to countries where the price is up to eight times that amount. Exporting gas may prove to be a profitable venture in-and-of-itself but also could soak up excess supply, which would bolster the domestic price.
Current State of LNG:
One way to alleviate the problem of natural gas oversupply in North America is to increase its export. The most economical way to export natural gas is to liquefy it into LNG, which is transported in specially designed transport ships. There are currently over 100 production, export and storage facilities in the U.S and several companies have submitted applications with the U.S. Department of Energy to begin LNG export.