North American LNG export capacity is on track to double over the next few years. While ADI Analytics remains a strong believer in this natural gas supercycle, this massive expansion is not entirely risk-free. In this brief update, Uday Turaga, CEO of ADI Analytics, breaks down the core structural, pricing, and infrastructure bottlenecks that could disrupt market margins.
Key Highlights
- Pricing model convergence: Surging export capacity could cause global gas prices to converge with cheap US Henry Hub prices, eroding major export margins.
- Rising supply costs: Inflationary pressures, labor constraints, and complex pipeline routes are rapidly driving up the marginal cost of production.
- The infrastructure bottleneck: Permitting new pipelines remains a severe hurdle, threatening the supply chains required to feed expanding terminals.
Watch the full video below to explore these emerging market risks.
About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
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