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U.S. Shale Gas Shaking Up Global Markets as LNG Supply Surges

  • With start of U.S. exports, global price premiums collapsing
  • U.S. to have 14% of LNG capacity by 2020: Energy Aspects
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Shale drillers from Pennsylvania to Texas flooded the U.S. with so much natural gas over the past decade that prices slid to a 17-year low. Now they’re going global, with the potential to upset markets from London to Tokyo.

The U.S. began shale gas exports by sea this year and is projected by the International Energy Agency to become the world’s third-largest liquefied natural gas supplier in five years. Gas will challenge coal at European power plants and become affordable in emerging markets, where prices have been high and supplies limited, according to the IEA and Goldman Sachs Group Inc.