US LNG exports: a new foreign policy tool

The US will use its gas bonanza as a foreign policy tool to reshape world gas market dynamics and lessen influence of key petro-states.
• The US which has edged out Russia as the world’s largest producer of natural gas is likely to get a LNG export capacity of 45 million tons by 2020-2025.

• The reduced vulnerability of North America and improved national energy security had led to a decreased interest in Middle East (ME) oil and a renewed strategic interest in Asia

• NA gas boom is a challenge to OPEC and Gas Exporting Country Forum (GECF), decrease the geopolitical power wielded by key petro-states (Russia, Iran…)

• North American natural gas exports will impact global gas pricing, eroding the appetite for oil-linked prices

• North America’s new role as a LNG exporter will play a central role in helping strategic allies which are important consumers, lessening their dependence on dominant suppliers (such as Russia in Europe)

• Fostering global shale resource potential in other parts of the world through the Global Shale Gas Initiative (India)