Dumitru Dediu, McKinsey & Co. (Source: Hart Energy)
According to consulting powerhouse McKinsey & Co., world demand for LNG is forecast to see robust demand growth through at least 2040, and U.S. shale gas producers can effectively compete to fill a coming supply gap. But only if we can build enough new pipelines and liquefaction plants to meet the demand. And that's the open question. As we report in a related story today (see Diversified CEO Says Gulf Coast has Brighter Future than Appalachia), it's easier to build new pipelines in the Gulf Coast than in the Marcellus/Utica region. At the recent America’s Natural Gas Conference, McKinsey Partner Dumitru Dediu commented, "Without new infrastructure, we may see Henry Hub prices increasing and, respectively, other less competitive basins supplying these LNG projects."
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