U.S. Gas Imports Fell 25% Last Year
Friday, July 13, 2012
In the face of surging domestic production, net gas imports into the United States plummeted 25% in 2011 to around 1.9 Tcf (5.4 x 1010 m3), the lowest level since 1992, the U.S. Energy Information Administration (EIA) has reported.
EIA said U.S. dry gas production grew 8% to 23 Tcf (65.1 x 1010 m3) while consumption rose only 2%.
“This combination led to greater domestic natural gas supply and relatively low prices in the United States, thus reducing the reliance on foreign natural gas. It also widened the price differential between Henry Hub and foreign markets outside of North America, making liquefied natural gas (LNG) exports more attractive than ever before.”
In 2011, the differential between the benchmark Henry Hub price and both LNG exports and re-exports averaged a record US$6.50/Mcf. EIA explained that international LNG prices are generally linked to crude oil, which has been rising. Meanwhile, U.S. gas prices have dropped to a 10-year low.
EIA said by the end of 2011, seven projects had applied for Department of Energy permits to export domestic LNG. So far, only has been approved.
For more information: www.eia.gov