Tellurian’s Souki Sees LNG Shortage By 2020

The video discusses the increasing global demand for natural gas, driven by low prices and environmental concerns, particularly in China and Europe. It highlights the potential capacity issues by 2020 if demand continues to grow at 11% annually. The shift from long-term to short-term contracts in the gas market is explored, emphasizing the United States' role as a low-cost producer. The video concludes with insights into market liquidity and the ability to make short-term pricing decisions based on regional demand fluctuations.

What is the projected issue if the 11% growth in natural gas demand continues until 2020?

• Operating at 90% capacity, which is unsustainable

• A decrease in global gas prices

• An increase in coal consumption

• A surplus of natural gas supply

How have low natural gas prices affected energy consumption in China?

• No change in energy consumption

• Increased energy consumption by 55%

• Shifted consumption to coal

• Decreased energy consumption by 55%

What environmental factor is influencing the shift from coal to natural gas?

• Increased coal reserves

• Higher coal prices

• Lower natural gas prices

• Environmental concerns and pollution

What change has occurred in natural gas contracts over the past decade?

• Contracts have become longer

• Contracts have shifted from long-term to more flexible short-term agreements

• Contracts are now exclusively with European countries

• Contracts require higher upfront payments

What role does the United States play in the natural gas market?

• It is a low-cost producer of natural gas and liquefaction facilities

• It is a high-cost producer of natural gas

• It only imports natural gas

• It has no significant role in the market