The global Natural Gas market is changing dramatically as a result of surging US shale production. Due to its geographical proximity and growing gas demand, Latin America and the Caribbean has emerged as a top market for US LNG, according to a new report by the Inter-American Dialogue, LNG in the Americas: How Commercial, Technological and Policy Trends are Shaping Regional Trade. The next few years will see a major shift in the hemispheric natural gas trade, as increased US Lng Exports increasingly displace volumes from other exporters, argue the authors. Key takeaways from the report include:
- US LNG exports to Latin America and the Caribbean spiked to over 200 million cubic feet last year since the first cargoes went out in 2016. Trade in the Americas is important to US exporters facing a global LNG supply glut as well as importers in the region that are looking to diversify fuel sources.
- Commercial developments, such as more flexible contract terms, and emerging technologies like small scale and floating LNG, are making regional gas trade more liquid and allowing new markets to open up. Policy developments will also impact LNG trade in the Americas, from proposals in the US to facilitate small-scale LNG exports to new restrictions on large hydroelectric dams in Brazil.
- The largest markets for LNG imports in the region have been Mexico and Brazil. But other markets, such as the Caribbean and Central America, have significant potential for growth.
Read: LNG in the Americas: How Commercial, Technological and Policy Trends are Shaping Regional Trade
This report by Alex Wood, Lisa Viscidi, and Jason Fargo was originally published by the Inter-American Dialogue
The statements, opinions and data contained in the content published in Global Gas Perspectives are solely those of the individual authors and contributors and not of the publisher and the editor(s) of Natural Gas World.
This post first appeared on Natural Gas Asia - Asia's Unconventional Gas And O, please read the originial post: here