EIA Foresees Doubling of LNG Exports by 2050

SEATTLE (Oil Monster): According to the Energy Information Administration (EIA), the U.S. natural gas production and LNG exports are likely to itness significant surge between now and 2050. The domestic gas consumption is expected to record marginal drop, EIA noted.

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The Annual Energy Outlook (AEO) published by the EIA states that the country will continue to remain as a net exporter of natural gas through mid-century, primarily driven by robust international demand. While the domestic natural gas consumption levels are expected to remain stable, the natural gas production will see growth in response to international demand for liquefied natural gas, the report said.

The AEO Reference Case projects annual LNG exports at 9.98 Tcf by 2050, compared with 3.96 Tcf recorded during the previous year.

The strength in the relationship between international natural gas prices and oil prices has eroded, on account of growth in more market-based LNG. However, EIA still expects that future oil prices will have a bearing on additional LNG export capacity and the overall export volumes. Building more LNG export capacity and exporting LNG are more economical when the Brent oil prices is relatively higher to the U.S. Henry Hub price, it said.