The deliveries of shale liquefied natural gas (LNG) produced by fracking, from USA to Europe will not have a fundamental influence on the market in the next few years, according to a survey Oxford Institute for Energy Studies. Such kind of deliveries will have mostly symbolic importance from a geopolitical point of view, than to reflect on market conditions. USA has interest of shale gas export to Latin America and Europe.
“LNG supplies from УСА to Europe have big symbolic importance from a geopolitical point of view, but in the current extent of the impact will be negligible until the start arriving in larger volumes in 2018-2019”, said the senior fellow at the Oxford Institute for Energy Studies, Jonathan Stern.
The export of US shale gas to Europe had already started this week, as tanker Creole Spirit with cargo of 98,000 tons of LNG departed from Sabine Pass terminal in Louisiana on course to Portugal, where expect to arrive during the next week. This is the first tanker from USA to Europe, and the sixth tanker exported from Sabine Pass.
The start of LNG exports to USA overshadowed forecasts lower demand and falling prices for energy resources in the global markets. number of projects announced for the construction of LNG export terminals in the United States under the changed conditions have to be frozen.
As follows from the report published in March, the Energy Information Administration at the US Department of Energy, the situation in the LNG market has changed dramatically. Doubts about the feasibility of the construction of all planned LNG export terminals are associated with increased competition in both domestic and global markets, as well as forecasts of falling demand for energy.