The US shale revolution shows no sign of slowing as the global natural gas market undergoes a major transformation

 
Courtney Goldsmith
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The global natural gas market is undergoing a major transformation (Source: Getty)

The boom in the US shale market won't be running out of steam any time soon as America is now on track to supply more than a fifth of the global gas output by 2022.

"This evolution of the role of natural gas in the global energy mix has far-reaching consequences on energy trade, air quality and carbon emissions, as well as the security of global energy supplies," the International Energy Agency (IEA) said today in a report on natural gas.

The US, which is the world's largest gas consumer and producer, will account for 40 per cent of the world's extra gas production to 2022. By that year it will supply 890bn cubic metres (bcm).

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More than half of the US production increase will be used for liquefied natural gas (LNG) for export. By 2022, the IEA estimates the US will be on course to challenge Australia and Qatar for global leadership among LNG exporters.

"The US shale revolution shows no sign of running out of steam and its effects are now amplified by a second revolution of rising LNG supplies," said Dr Fatih Birol, the IEA’s executive director.

The IEA called US LNG a "catalyst for change" in the international gas market. The Paris-based agency said it will diversify supply, challenge traditional business models and suppliers, and transform global gas security.

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