LNG (Liquified Natural Gas) is natural gas that has been cooled to a liquid state (liquefied) to about -260° Fahrenheit for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than the volume in its gaseous state in a natural gas pipeline. This liquefaction process, developed in the 19th century, makes it possible to transport natural gas to places natural gas pipelines do not reach and to use natural gas as a transportation fuel.
In just 15 years, the U.S. has gone from a net importer of LNG to becoming the world’s largest Liquid Natural Gas (LNG) exporter in 2022. The U.S. will surpass Qatar and Australia with an estimated 14 Bcf/day in exports by the end of 2022, up from 10 Bcf/d of export capability with the completion of the first wave of export facilities in mid-2021. LNG exports continue to be the most significant driver of U.S. natural gas demand.
Based upon changes in demand, we produce analysis and a price forecast to predict wholesale electricity prices in NYISO, PJM and ISO-New England. This week’s Energy Watch report provides an overview of load developments and a 10-year price forecast for each of the Northeast regions. In most areas of ISONY, 2021 energy demand is projected to be down slightly. Longer-term projections under the preliminary 2021 NYISO Gold Book are lower than the 2020 Gold Book projections.
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ESAI Power is a market research and consulting firm that delivers focused analysis of the wholesale power markets in the Northeast region of the US: PJM, NYISO, and ISO-NE. Since 2001, ESAI has been providing market-focused research product content and custom consulting services for Northeast power market participants including investors (banks, private equity, & hedge funds) & developers, generation owners & operators, utilities & retail electricity suppliers, regulators & RTOs, traders, and end-users & buyers.