Proposed US liquefied natural gas exports have spurred fears that exports will boost domestic gas prices, but a new study by the Bipartisan Policy Center says it is the other way around.
“Exports don’t drive prices, prices drive exports,” Tracy Terry, director of the BPC’s Energy Project, said on a conference call Monday. “LNG exports only reach 2 Bcf/d [of gas] in the high demand scenario,” she added.
The study released Monday was intended to explore the relative impact of different supply and demand drivers over the next several decades. “We were particularly interested in getting a better understanding of the dynamics of natural gas prices,” Terry said.
The study looked at possible demand from LNG exports, industry, power generation and natural gas-fueled vehicles.