Bloomberg: Shale Gas Global Aims Seen Threatened by Iran ‘Supergiant’

A potential boost in natural gas supply from Iran and Egypt may exacerbate a worldwide glut, reshape the global market and threaten U.S. export ambitions, according to Citigroup Inc.

Projects from North America to East Africa and Australia may be affected as Iran progresses with its “supergiant” South Pars gas field and after Eni SA’s discovery of massive resources offshore Egypt, Citigroup analysts including Anthony Yuen said in a report Sept. 2. The two developments may displace demand for liquefied natural gas in the Middle East and beyond, possibly deterring future U.S. export projects, according to the bank.

“Iran and East Mediterranean, key regions in the next wave of global gas supply beyond the U.S., made major strides in late August,” the bank said in the report. “These developments set the stage for a major boost in gas production and could help remake the global gas landscape.”

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