The U.S. will become such an important LNG supplier that by 2020, 60 percent of the U.S.' LNG will find a market in Europe, according to Wood Mackenzie's latest report released this week.
The report indicates that the coming years will see a reshaping of the world gas trade, with new LNG suppliers coming online as demand growth in some major markets increases.
"While demand is there, some U.S. producers will be unable to recover the cash cost of shipping to Europe, as oversupply forces gas prices to stay low," the report read.
The report noted that it is likely that some U.S. LNG will be shut-in on a seasonal basis until the mid-2020s.
"That said, volumes delivered to Europe will continue to increase to 2025 before falling once more as competition from other new LNG suppliers and destinations causes the U.S. volumes to be diverted elsewhere," it explained.
The report also stressed that India will account for only 3 percent of the global market by 2035. Gas demand growth in India is projected at 156 percent from 2016 to 2035, at 5 percent per annum.
By Murat Temizer