This article was originally published by Seeking Alpha on September 8, 2014
Summary: The
global LNG demand is set to grow by an average of around 5% per year through
2030. Currently, Qatar is the biggest exporter of LNG but the energy landscape
could significantly change in the next couple of years. In the U.S., Cheniere
Energy is leading the change.
The global
demand for liquefied natural gas, or LNG, imports is expected to continue
growing through 2030. Qatar has led the world with its LNG exports. Until last
year, the country alone had a quarter of the world's total LNG capacity. The
market dynamics, however, could significantly change over the coming years with
the emergence of the United States, as well as other countries, as one of the
biggest exporters.
Several
companies in the U.S. have planned to capitalize on this trend, such as Exxon Mobil (NYSE:XOM), Sempra Energy (NYSE:SRE) and Dominion Resources (NYSE:D). However,
Cheniere Energy (NYSEMKT:LNG), a pure-play on LNG exports, is significantly
ahead of this crowd.
Global LNG
Demand
The
increasing demand for LNG is driven primarily by the energy hungry Asia-Pacific
markets, whose natural gas imports consist of 80% LNG. Consequently, since the
beginning of the current decade, the demand for LNG has grown by 7% per year,
more than twice as fast as the growth in demand for natural gas. This growth
was led by Japan and South Korea that consumed a majority of the LNG imports to
Asia. However, new demand centers, particularly China and India, are also
emerging …. Read full article at Seeking Alpha.