LNG Expected to Bolster Domestic Supply Despite Lagging Demand
Posted on Apr 28, 2006 in Markets and Competition | Comments Off on LNG Expected to Bolster Domestic Supply Despite Lagging Demand
An expected rise in LNG imports over the next three years may increase natural gas supply in the United States, but consumer demand for gas will likely be tempered by high price expectations, according to an analyst with Lehman Brothers. As a result, lower demand coupled with increased storage could decrease natural gas prices by as much as $1 to about $5/MMBtu in 2006, says Thomas Driscoll of Lehman Brothers. Despite anticipated increases in LNG imports, he believes that “LNG will only supply 7% of US supply in 2009.” Details are available in yesterday’s Platts LNG Daily. [Subscription required]