IMPACT OF UNCONVENTIONAL GAS PRODUCTION ON LNG SUPPLY AND DEMAND

Production of unconventional gas plays a double role in the case of liquefied natural gas (LNG) industry. Technological development of gas production from unconventional resources could result in significant decrease of LNG import demand but at the same time unconventional resources also represent a potential for new sources of LNG supply. In past few years unconventional gas production in North America has increased constantly what has contributed to natural gas prices decrease and LNG imports reduction. The rise of unconventional gas production along with global recession significantly influenced LNG demand decrease in the USA. Concerning unconventional gas production rapid development, potential decrease of LNG demand in rest of the world is expected.