North America is swimming in natural gas and global demand still lags, but within a few months, opportunities are expected to open up as Gulf Coast and Western Canada exports expand and storage levels decline.
Relief is coming to cut into the surfeit of storage, but it’s unlikely to happen before 2025, energy experts said at the LDC Gas Forums Rockies & West conference in San Diego. East Daley senior energy analyst Alex Gafford discussed the opportunities and challenges ahead with NGI’s Leticia Gonzales, managing director of North American natural gas pricing, and with NRG Energy Inc.’s Chet Sharma, natural gas fundamentals analyst.
Winters have been warmer than normal. Greenfield and expanded LNG export projects, some promised to start up this year, have been delayed. Associated natural gas from Permian Basin oil wells is being burned off because of a lack of takeaway and negative pricing.
