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How LNG can help There are vast reserves of natural gas in the world without access to local markets. Liquefied natural gas (LNG) imports now provide only about 3 percent of U.S. natural gas supplies, largely because LNG has not been price competitive with domestic natural gas. That is changing. With market prices consistently above $6 per million British thermal units (MMBtu), LNG is a natural choice to fill the growing supply-demand gap in the North American market from many locations around the globe.
Source: BP 2006 Annual Statistic Review The chart above reflects the current level of proven natural gas reserves in producing regions around the globe. It also reveals the average annual levels of natural gas consumption in those regions. What is most telling is the third column, which sets an approximate time frame for the depletion of gas reserves by region at current consumption rates. This shows why regions such as the Middle East and Africa will have excess supplies of natural gas which can be converted to LNG to supply regions with declining production and higher levels of consumption. Cambridge Energy Research Associates predicts that the global LNG market will triple in size and play a more important role in world energy supplies over the next 20 years. |
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