Energy Quote of the Day: LNG Exports and the Risk of Lost Opportunity

Investment bank Simmons & Co’s long-term forecasting envisions 12-20 billion cubic feet per day of incremental US natural gas demand by 2020, pushing total demand to 82-90 bcfd from around 70 bcfd this year. LNG exports are the biggest driver, adding 4.2-6.8 bcfd, followed by exports to Canada and Mexico (2.5-3.4 bcfd), power generation (3.2-5.6 bcfd) and transportation (0.5-1 bcfd).

“The DOE’s [Department of Energy] timely review of LNG export permits is critical to our forecast.  Should there be significant permitting delays, this could represent a lost opportunity for the U.S. given the competitive global nature of LNG supply,” the bank said.