Abstract: The objective of our paper is to analyze the short- and long-term prospects for LNG development in the US. In particular, we discuss LNG investment projects with respect to natural gas supply and demand, existing transmission infrastructure, and competing pipeline projects. We conclude that in the mid-term, LNG will assume an essential role in meeting US demand because of stagnating domestic and declining production in North America and an expected increase in demand for natural gas. Additional net imports will be required in the western US (mainly southern California), the Southeast, and in the Northeast - three areas of the nation that lack adequate supply. However, when accounting for the current status of existing natural gas infrastructure and forthcoming investments, we conclude that there should be little concern about sufficient investment incentives and supply security in the US competitive natural gas market.
JEL Codes: L95, Q41
Keywords: Natural gas supply-demand balance, liquefied natural gas, LNG, infrastructure investment
