U.S. shale drillers poised to take hold of worldwide gas market
Shale drillers within the U.S. are about to tighten their grip on the world natural gas market.
TransCanada corp.’s call in the week to shelve plans for lower tolls on its gas pipeline to eastern canada means less provide can head there from the country’s western reservoirs. That opens the door for U.S. explorers like Antero Resources corp. and Rice Energy inc. to edge out Canadian competitors and ship a lot of gas north of the border.
Canada is simply one among several new frontiers for the shale producers propelling the U.S. into the ranks of the world’s high gas suppliers. but a decade when U.S. gas imports rose to a record, Citigroup inc. information show the country has become a net exporter of the fuel as cargoes head from the gulf coast on tankers to ports across the globe.
“This makes it lots easier for U.S. producers, knowing their Canadian counterparts aren’t going to compete,” Jihad Traya, a natural gas consultant for solomon Associates in calgary, said by phone weekday. Canadian drillers are “getting shut out of a market they may ne'er get back.”
Drillers in Pennsylvania’s Marcellus basin, the largest U.S. gas play, are poised to expand their reach in Canada’s population centers. Antero, Rice and Gulfport Energy corp., that ships provides from the basin to Midwest markets, stand to profit the most from TransCanada’s move, Evercore isi analysts Timm Schneider and stephen Richardson said in a very note to clients dated weekday.
TransCanada halted plans to lower rates on its inject as a result of there wasn’t enough interest from Western Canadian producers, the company said tuesday. Those drillers currently stand to lose even a lot of market share to U.S. competitors, Martin King, an analyst at GMP FirstEnergy in calgary, said by phone weekday.
“More U.S. gas is going to be feeding into southern canada,” King said.