American Oil and Gas Reporter - September 2015 - 42

Global LNG Market Is Set To Explode
LONDON-Global liquefied natural
gas capacity could more than double
from 341 million tons a year (MMty) in
2015 to 811 MMty by 2019, based on
proposed natural gas liquefaction projects,
according to research and consulting firm
GlobalData.
In Global Capacity and Capital Expenditure Outlook for LNG Terminals-
U.S. to Shake up Global LNG Market
with Staggering Pipeline of Planned Liquefaction Projects, the company states

that the scale of the North American
project pipeline is unparalleled, totaling
32 individual liquefaction plants with
more than 287 MMty of capacity through
the end of the decade. Dramatic liquefaction
capacity growth also is anticipated in
Africa, Europe and Asia, GlobalData adds.
Matthew Jurecky, GlobalData's head
of oil & gas research and consulting, notes
this massive infrastructure build-out in
the United States is driven by North American unconventional gas. He comments,

"Years of lobbying for regulatory approval
and building liquefaction capacity has paid
off, and the global market now will have
to make room for significant, increasing
volumes of North American gas.
"Shale operators in North America
have eyed international markets since
2009, when BG Group entered a joint
venture with Exco Resources in the Haynesville Shale," Jurecky continues. "Shortly after, in 2010, the first application for
an LNG export facility in the United
States was made by Cheniere Energy,
before BG announced a long-term LNG
sale and purchase agreement with Cheniere
in 2011. With Shell acquiring BG in
early 2015, the global LNG leader also
is lined up now behind the emerging
U.S. shale gas export market."
Jurecky says GlobalData estimates the
capital expenditure required to execute
the planned projects is $700 billion,
almost half of which is allocated to
projects in North America.
The analyst also says global LNG regasification capacity is expected to grow
by 50 percent, from 41 trillion cubic feet
in 2015 to 60 Tcf by 2019.
Jurecky says, "The massive growth
in liquefaction is commensurate with the
proposed growth in regasification capacity.
Continued demand growth in Asia and
an alternative to pipeline natural gas in
Europe underlies the $34 billion in capital
expenditure behind new LNG regasification projects.
"China and India will lead regasification
additions, with a combined $20.6 billion
proposed to increase regasification capacity
by 7 Tcf in the two countries by 2019,"
Jurecky points out. "Canatxx LNG Limited
is planning a massive LNG import terminal
in the United Kingdom with a total capacity
of more than 1 Tcf."
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Rex Energy Exchanging
$325 Million Senior Notes

STATE COLLEGE, PA.-Rex Energy
Corp. has announced that it is exchanging
up to $325 million aggregate principal
amount of its 6.25 percent senior notes
due in 2022.
The corporation says the registered
exchange offer, which expired June 8,
fulfilled its obligations to register its outstanding private notes. Pursuant to registration rights agreements, the corporation
confirms it agreed to file a registration
statement with the Securities and Exchange
Commission relating to the exchange
offer and the exchange notes.
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42 THE AMERICAN OIL & GAS REPORTER

American Oil and Gas Reporter - September 2015

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