Tuesday, December 21, 2010

Natural gas dislocation could lead to exports

What happened to the energy shortage? What happened to the problem of imported oil? Now there is talk that natural gas could be exported from the US. Export liquification could be coming in 2-3 years given more supply ill be hitting the domestic market. This would push US prices closer to world prices. Gas traded at $13 per m BTU in 2008. Now prices are less than a third of that level. The Cheniere company may develop an export terminal through Sabine Pass, a large import terminal.

NG traders are more bullish out three years when they think this supply bubble will be gone.


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