Wednesday, May 15, 2013
US gas demand is expected to see strong to medium growth over the next five years, with the market undersupplied by about 1.1 Bcf/d, which will lead to a slight rise in gas prices, analysts at Bentek Energy said Tuesday.
Speaking at the Benposium conference in Houston, Bentek analyst Anthony Sweet said that out of 18 Bcf/d of new potential demand, 2 Bcf/d will come from Mexican exports, 2 Bcf/d from the power sector, 6 Bcf/d from the industrial sector, and 8 Bcf/d from liquefied natural gas exports. Bentek is a unit of Platts.
Bentek director Jack Weixel said while the outlook for potential demand is higher, a more pragmatic forecast would likely be around 13.9 Bcf/d.
The 1.1 Bcf/d difference between demand and supply will lead to an average gas price of $4.43/MMBtu, an increase of 10 cents above the current futures curve, said Weixel.
For the full article, go to www.platts.com.