CFTC Releases Report on LNG Markets

Today, the U.S. Commodity Futures Trading Commission (CFTC) issued a report assessing the market impacts due to the United States transitioning from being a net importer to a net exporter of LNG in 2016.

The three main takeaways of this report are:

  1. Global LNG trade growth is expected to continue with U.S. LNG exports having the most rapid growth rate and a competitive price advantage.
  2. U.S. LNG export growth may put upward pressure on U.S. natural gas prices and expose a heretofore relatively isolated North American market to global market dynamics.
  3. Burgeoning U.S. LNG exports are affecting global LNG market dynamics, including contracting and risk management practices in CFTC regulated markets.


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