IPAA Access - Summer 2017 - 10

Feature

Great Exportations:
LNG Revolution About to
Take Place is the Real Deal
By Jack Anderson, FTI Consulting

ON JUNE 8, THE UNITED ARAB EMIRATES PURCHASED A SHIPMENT OF LIQUEFIED NATURAL GAS (LNG) ON
THE SPOT MARKET FROM SHELL. BUT THIS WAS NO ORDINARY TRANSACTION. TWO DAYS EARLIER, THE
UAE JOINED SAUDI ARABIA, BAHRAIN AND OTHER REGIONAL STATES IN FORMALLY SEVERING DIPLOMATIC
AND ECONOMIC TIES WITH NEIGHBORING QATAR - THE WORLD'S TOP EXPORTER AND PRIMARY SUPPLIER
TO THOSE COUNTRIES OF NATURAL GAS.

b

But UAE had options - options it didn't
have 16 months ago.
One month prior to the Middle East's
biggest diplomatic row in decades, a
Greek-flagged LNG tanker called the Maran
Gas Amphipolis left the Cheniere LNG
Terminal in Sabine Pass, Louisiana. It was
full of natural gas owned by Shell intended
for delivery in Kuwait. Just as the tanker
entered the Gulf, the UAE offered a higher
bid than the original customer was willing
to pay and took possession of the product
less than 24 hours later. Uber cars have been
ordered with more stress than this.

10

IPAA ACCESS MAGAZINE Summer 2017

Just a few short years ago, the idea
that the United States would find itself
in the position of being able to supply
natural gas to a country in the Middle
East would have seemed ludicrous.
After all, we've only been exporting
natural gas for 16 months, and only from
a single terminal in Cameron Parish. In
February 2016, after almost a decade
of development, Cheniere exported
its first ever LNG cargo, and has since
sent over 100 tankers to dozens of
countries worldwide. And we're just
getting started.

By the end of 2021, EIA forecasts
that four more export terminals will
be operational, with the potential to
contribute more than three trillion cubic
feet (tcf) of LNG annually to global energy
markets. If the Dubai transaction is a
sign of things to come, those additional
terminals will shake up international
LNG trade patterns like nothing we've
seen before. LNG from the U.S. is already
competing with Middle Eastern gas for
market share in Asia. And just this month,
U.S. LNG arrived in Poland for the first
time, putting a chink in the armor of



Table of Contents for the Digital Edition of IPAA Access - Summer 2017

President’s Message
Great Exportations: Lng Revolution About to Take Place Is the Real Deal
Litigation Continues to Halt Hydraulic Fracturing Regulations
Private Capital Conference
Wildcatters’ Ball
Congressional Call-Up
OGIS New York
Index of Advertisers
IPAA Access - Summer 2017 - intro
IPAA Access - Summer 2017 - bellyband1
IPAA Access - Summer 2017 - bellyband2
IPAA Access - Summer 2017 - cover1
IPAA Access - Summer 2017 - cover2
IPAA Access - Summer 2017 - 3
IPAA Access - Summer 2017 - 4
IPAA Access - Summer 2017 - 5
IPAA Access - Summer 2017 - 6
IPAA Access - Summer 2017 - 7
IPAA Access - Summer 2017 - 8
IPAA Access - Summer 2017 - President’s Message
IPAA Access - Summer 2017 - Great Exportations: Lng Revolution About to Take Place Is the Real Deal
IPAA Access - Summer 2017 - 11
IPAA Access - Summer 2017 - 12
IPAA Access - Summer 2017 - 13
IPAA Access - Summer 2017 - Litigation Continues to Halt Hydraulic Fracturing Regulations
IPAA Access - Summer 2017 - 15
IPAA Access - Summer 2017 - Private Capital Conference
IPAA Access - Summer 2017 - 17
IPAA Access - Summer 2017 - Wildcatters’ Ball
IPAA Access - Summer 2017 - Congressional Call-Up
IPAA Access - Summer 2017 - OGIS New York
IPAA Access - Summer 2017 - 21
IPAA Access - Summer 2017 - Index of Advertisers
IPAA Access - Summer 2017 - cover3
IPAA Access - Summer 2017 - cover4
IPAA Access - Summer 2017 - outsert1
IPAA Access - Summer 2017 - outsert2
IPAA Access - Summer 2017 - outsert3
IPAA Access - Summer 2017 - outsert4
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