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US shale gas shapes up as LNG export rival

Sarah-Jane Tasker From: The Australian

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US shale gas shapes up as LNG export rival | The Australian

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May 23, 2011 12:00AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these?

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THE US will emerge as a strong competitor to Australia's rapidly growing liquefied natural gas sector as Asian demand is boosted by nuclear power's bad publicity recently. Australia, with 13 LNG projects at various stages of development, is set to become the world's top producer by 2020, with Asia the No 1 export destination. The shale gas industry in the US is shaping as a strong competitor in Asia, and after 2015 the US could be a major exporter of LNG, according to a Standard Chartered Bank report. The report, LNG: The Second Coming, says Asian buyers can be expected to seek alternative sources because of the widening supply deficit. In the short term most of Asia's LNG will be sourced from the Middle East and Australia, the report says, but Singapore-based analyst Han Pin Hsi estimated the US would be a net LNG exporter of up to 20.7 billion cubic metres to the Pacific Basin by 2015-16. Start of sidebar. Skip to end of sidebar.

Related Coverage
Drillsearch, QGC in $130m shale JV Adelaide Now, 27 Jul 2011 Gas boom to put us on top of the world The Australian, 19 Jul 2011 Gas development fires up Herald Sun, 18 Jul 2011 LNG exporters to be hit hard The Australian, 10 Jul 2011 Cheap US gas a threat for LNG players The Australian, 12 Jun 2011

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US shale gas shapes up as LNG export rival | The Australian

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End of sidebar. Return to start of sidebar. "Asian gas markets are now targeted by both US east-Gulf coast and Canadian west coast LNG projects," he said. Energy experts have warned that US shale gas could compete with Australian LNG exports in the long term, as technological advances in shale gas extraction technology unlock previously unavailable resources. Gas captured in shale does not flow as easily as conventional gas but technological breakthroughs in the past decade mean the shale can be fractured underground to release the gas economically. Major US energy players have considered building LNG plants to export shale gas to Asia. Outgoing Woodside chief executive Don Voelte -- who has overseen the development of the $43 billion Gorgon LNG project off Western Australia -- said he was not concerned about proposals to develop LNG plants in North America to export shale gas, questioning the economics of such projects. Despite the warning of the US's rise as a major competitor, Standard Chartered still expects Australia to be the largest LNG exporter in the Asia-Pacific region in the next 10 years, with demand to be boosted by Japan's nuclear crisis following the tsunami. "We see China and India as the main demand drivers, while Japan could increase LNG consumption in the long term as it grapples with an increasing perception, rightly or wrongly, of the high risk of nuclear power generation," Mr Hsi said in the report. Standard Chartered's report concluded that about 15 per cent of nuclear power consumption in the Asia Pacific region would be switched to LNG as governments rethought their energy policies. Before the earthquake, Japan had 56 operating nuclear reactors, but 16 nuclear units at four plants have now been shut down. "Already, two nuclear plants under construction have been halted post the earthquake and the status of the other previously planned 12 are still under review," Mr Hsi said. Japan's Tohoku Electric Power announced on Friday that it had purchased 800,000 tonnes of spot cargoes of LNG. Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these?

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Rejuvenation of gas supplies from Moomba Adelaide Now, 20 May 2011 BG faces Queensland Curtis plant delay The Australian, 11 May 2011 Beach plans shale gas well by year-end Adelaide Now, 13 Apr 2011 Beach Energy hits back The Australian, 12 Apr 2011

Survival of the fittest - Voelte Adelaide Now, 20 May 2011 Public in the dark over export potential The Australian, 11 May 2011 More related coverage Related Searches Middle East, North America, Grant King, Australian Petroleum Production, South Australia, Cooper Basin, Wood Mackenzie, Beach Energy, Reg Nelson, Origin Energy

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