With the boom in shale gas
in the US, the country is anticipated to
challenge Russia's LNG monopoly in Europe by the end of the
Europe is becoming increasingly reliant on imports as its
domestic gas fields mature, and it will require additional
sources of LNG supply.
New LNG projects in the US, Australia, Russia, East Africa
and Canada could double global LNG production to 600 million
tons per year from 2018.
Two major projects slated to come onstream this year are
ExxonMobil's Papau New Guinea LNG project
and BG Group's Queensland
Curtis LNG project
The majority of new Australian and East African LNG
projects are geared to meet
Asian demand, while much of the new US LNG
output is slated for export to
Europe after 2015.
Presently, there are more than a dozen proposed LNG export project
s at various stages of
approval in the US. Russia, the dominant LNG supplier to
Europe, charges high prices for its LNG, offering US
exporters an opportunity to seize market share through
According to ConocoPhillips' global LNG marketing manager,
Birger Balteskard, "There is a potential large gap between
demand and supply into Europe. We think, by 2025, that will
be as much as 25 [billion cubic feet per day], which is
However, changing Asian energy needs could have a significant
impact on this scenario.
If China's LNG demand rises faster than anticipated, and/or
if Japan continues to uphold its nuclear energy restrictions,
then the availability of gas exports to Europe could be
"Assuming the East Africa, US and Australia [LNG
scenarios] do happen the way
we think, the main thing to look at is what is going on in
China. How much energy will it be able to absorb?" Mr.