Join the Dialogue – Why U.S. LNG Won’t Face Australia’s Natural Gas Supply Problem

A recent article by RBN Energy, The Real “Land Of Plenty” – Why U.S. LNG Won’t Face Australia’s Natural Gas Supply Problem, highlighted some of the main differences between the American and Australian LNG industries.

Though the two countries are similar in size, their natural gas output and pipeline infrastructure differ greatly. Today, LNG exports account for 50% of Australian gas production, whereas LNG makes up only 22% of U.S. production. The expanse American pipeline system has been able to provide a steady supply to the country’s population of 326 million. On the other hand, many of Australia’s 24 million inhabitants – 300 million fewer than the U.S. – live a great distance from areas of natural gas production and the country does not have a complex pipeline system that can provide a steady stream of supply. This has resulted in some Australians paying more for domestic natural gas than international LNG buyers receiving LNG shipments from the land down under.

A logical conclusion is that the U.S. has a long way to go before LNG exports will have any major effect on domestic supply. The American LNG export market has plenty of room for growth, and companies should be motivated to take FID on terminal construction and pipeline projects that can spur its expansion. You may click here to read the full article as published on RBN Energy.

The North American Gas Forum this October will discuss the details of the proliferation of the LNG export market, global outlook for U.S. natural gas, new market opportunities and more. Representatives from across the value chain will engage in a dialogue with industry, regulators, academia and politicians about the United States’ path to becoming the second-largest, or even largest, global LNG supplier. Click here to learn more and register.