(Picture Credit: EMA)
The US is likely to export only a limited amount of LNG and will thus have a limited impact on the global market, said Dr Mitchell Baer, Director, Office of Policy and International Affairs in the United States Department of Energy.
Given North America's shale gas revolution within North America, oil & gas players and governments in Asia have been very interested in finding out if applications by producers to export gas would be approved.
Dr Baer has highlighted that studies have been conducted to look at the impact of LNG exports on the energy production and price within the US market, and more are expected to be carried out.
Commenting on the DOE's studies, Michele Pani, Associate Principal at McKinsey & Company, commented that the global impact of the US gas is related to the results of the studies and their assumptions. For example, if domestic gas demand projections are too low, the US would become a net exporter and vice versa.
He added that domestic gas consumption level within the US is likely increase as the current rules and regulations were designed to encourage gas-fired power generation instead of oil. Petroleum and diesel are also likely be replaced by gas as a transportation fuel, he said, as the US makes efforts to reduce pollution.
By :Kevin Goh, EMA