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U.S. Opportunity to Export

Current market fundamentals have created an opportunity for the U.S. to offer natural gas to global markets at competitive prices, promoting environmentally friendly economic development for emerging markets, improving our balance of trade, and supporting approximately 30,000 to 50,000 jobs for 2 Bcf/d of additional production. Global demand for natural gas is increasing and the demand for LNG will soon exceed worldwide production capacity.  The U.S. is experiencing an increase in natural gas production, primarily driven by unconventional gas plays, and U.S. natural gas demand continues to lag behind market projections.  The cost to produce natural gas in the U.S. plus the cost to transport LNG to international markets is significantly below crude prices on an energy equivalent basis and oil indexed gas market prices, presenting a substantial value arbitrage opportunity, as illustrated below.

Export Service at Sabine Pass Provides Opportunity
to Arbitrage Henry Hub vs. Oil
us gas supply

LNG is the fastest-growing component of the global natural gas market, increasing at a 6% annual rate over the last decade. For countries that lack indigenous natural gas resources and delivery infrastructure, LNG represents a rapid and cost-effective means of introducing natural gas into their local fuel mix. Currently there are 25 LNG-importing countries in Europe, Asia, South America, Central America, North America and the Middle East, up from 17 importing countries in 2007.  Numerous developing countries, including Poland, Croatia, Bangladesh, Jamaica, Colombia, Panama, El Salvador, Costa Rica and Lebanon, among others, are considering plans to build new LNG terminals and enter the global LNG trade.