The difficulties associated with inadequate domestic supplies will eventually be resolved as consumers and producers react to the signals provided by market prices. Indeed, the process is already under way. As a result of substantial cost reductions for liquefaction and transportation of LNG, significant global trade in natural gas is developing.
This activity has accelerated sharply over the past few years as profitable arbitrage has emerged in natural gas prices across international markets. At the liquefaction end of the process, new investments are in the works across the globe. Enormous tankers to transport LNG are being constructed, even though they are not dedicated to specific long-term delivery contracts.