Contents Short-term fundamentals updated monthly U.S. natural gas plentiful, low-cost U.S. natural gas supply Global LNG global gas market is growing and becoming commoditized 3
2019 U.S. dry gas production (bcf/d) U.S. Lower-48(2) Rockies 9.7 9.3 Appalachia Jan Sept 93.0 Midcontinent(1) 10.1 10.1 30.0 31.9 87.7 Permian Jan Sept Jan Sept Jan Sept 11.2 9.6 Haynesville Jan Sept Eagle Ford 9.5…
LNG demand is growing 13.3% y/y in 2019 MT per month 37 2019 expected capacity LNG capacity +9.2% y/y 35 LNG demand +13.3% y/y 33 2019 LNG demand Utilization rate 91.1% YTD 31 29 27 2018 LNG demand 25 Jan Feb Mar Apr…
Contents Short-term fundamentals updated monthly U.S. natural gas plentiful, low-cost U.S. natural gas supply Global LNG global gas market is growing and becoming commoditized 9
Plentiful, low-cost U.S. natural gas Production growth and resource base from selected U.S. unconventional basins Resource size, Tcf Basin Wellhead cost, /mmBtu 411 Total U.S. lower-48 dry natural gas production 36.0 Bcf/d 29.2…
Permian gas outlook range of forecasts Permian dry gas production 2025 YE (Bcf/d) production Permian gas supply driven by oil 26 Pioneer(1) production economics 22 Rystad/BP/EIA Gas-to-oil ratios in Wood Mackenzie/IHS(2) the Basin…
Permian by the numbers 4.1 2.5-4.0 1 4 -0.90 million bpd Gas-to-oil ratio bcf/d ranking /mmBtu (GOR) 3-year avg. basis One of the most prolific oil Average GOR in the Estimated natural gas flared The United States is among 3-year…
Looming challenge of U.S. gas oversupply U.S. natural gas must be exported Legend 2018-2025: Operating/under construction LNG +7 Future infrastructure required +22 Bcf/d total gas supply growth(1) +X Incremental gas supply by 2025…
Contents Short-term fundamentals updated monthly U.S. natural gas plentiful, low-cost U.S. natural gas supply Global LNG global gas market is growing and becoming commoditized 14
Global LNG demand pull Key drivers 800 Capacity required(1) China 9.3%(2) 700 250 mtpa 9.3% p.a. growth rate 600 5%(3) India 500 Under construction 100 mtpa 400 In operation 300 Europe 200 100 New markets 0 2015…
Latent LNG demand from fuel substitution There is substantial latent demand for LNG, which is competitive with oil prices and cleaner than coal LNG prices trade between oil and coal prices 1,359 mtpa LNG equivalent latent LNG demand…
Natural gas demand linked to renewables Natural gas share in UKs power mix grew to 50% as higher Gas-fired power generation is a cleaner, more affordable, CO2 prices incentivized dispatch of cleaner fuels and reliable backup to…
LNG required to offset Groningen declines Netherlands capping production from the Groningen field requires 10 mtpa of LNG bcm Groningen yearly production 54 Forecast Netherlands 42 Mandated production cap 28 28 24 22 15…
Emerging consumption: China and India Population and economic growth imply significant upside to gas consumption in China and India Size indicates relative Natural gas share of 2018 energy mix GDP/capita volume of gas 80,000…
Growing demand in China Economic growth and emerging environmental policy drives demand growth Chinese gas demand billion cubic meters per year 510 438 120 LNG 4.5% CAGR (2018-2030) 108 277 74 Domestic 391 production 6.1%…
Growing number of importers accessing LNG The number of LNG importing nations has grown by 60% in the last 7 years 33 total floating storage and regasification units (FSRUs) represent 130 42 mtpa of global 40 regasification…
New demand from LNG bunkering Cleaner burning LNG is becoming more popular as a fuel for marine vessels for IMO 2020 mtpa Comparison of LNG bunkering forecasts 70 LNG offers shippers a smart way to meet existing and upcoming…
Physical and financial liquidity is growing Financial derivatives Physical liquidity Lots JKM futures traded (10,000 mmBtu/lot) Spot and short-term LNG trade 400,000 Total trade (mtpa) 350,000 2019 annualized JKM swaps 99.3 Share…
U.S. emerges as the worlds largest LNG exporter Based on firm capacity 30.6 Triangle of low- cost supply 92.4 77.8 88.8 Current capacity (mtpa) (producing and under construction) Source: Wood Mackenzie, Tellurian…
Current LNG buildout has experienced cost overruns Announced total capex cost increases for selected Announced liquefaction EPC cost increases for selected Australia and Papua New Guinea projects existing and under-construction U.S.…
Conversion factors To: 1 billion cubic 1 billion cubic Natural gas and LNG meters of natural feet of natural 1 million metric 1 trillion British 1 million tonnes gas gas tonnes LNG thermal units of oil equivalent (bcm) (bcf) (mt)…
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