The natural gas-producing world is eyeing a new, major opportunity in Asia. Prices for imported gas have been soaring as an energy crisis persists in various countries across the continent. And the U.S., despite its huge shale-gas reserves, has been unable to act on this opportunity, hobbled by a lack of liquefied natural gas (LNG) export facilities.

Now, all that is about to change. In late October, BG Gulf Coast LNG LLC and Cheniere Energy Partners LP inked an LNG export deal. Through the landmark $8-billion sales and purchase agreement, U.S. gas will be exported from Cheniere’s planned Sabine Pass liquefaction facility in Louisiana. BG Gulf Coast, a subsidiary of Berkshire-based BG Group Plc, will purchase 3.5 million tonnes of LNG per year for 20 years from the terminal.

LNG exports are expected to begin in 2015, and at the annual rate of 3.5 million tonnes, BG has only contracted for some 39% of the total 9 million tonnes annual planned export capacity.

BG will purchase the LNG at a rate above the Henry Hub price, plus a premium. Its extensive presence in the global LNG industry opens up a plethora of possible higher-paying markets for U.S. gas, according to a recent report from Evaluate Energy, based in London and Calgary.

The deal represents a lifeline for Cheniere, which, with this agreement , now has the required financing to realize its Sabine Pass export project, the report notes. Cheniere was among the first to apply for permits to turn its import facility into a bi-directional terminal with capabilities for export, and is now on the road to executing its plans. ConocoPhillips (Freeport terminal), Dominion Resources (Cove Point terminal) and BG in conjunction with Southern Union Co. (Lake Charles) have also applied for licenses to turn their mostly idle LNG import terminals into more lucrative exporting ventures, the report notes.

The report examines the impact this deal will have on the U.S. domestic shale-gas market, and the main contenders competing to meet Asia’s energy shortfall.

The rewards of gas export for producers and the exporting companies are becoming clearer. The U.S. natural gas price at Henry Hub has been languishing at around $3.60 per thousand cubic feet (Mcf). In the Far East, however, Japan in particular has been paying relatively high rates to import gas ever since the earthquake that rocked the country’s power supply in March 2011.

“One exceptional example came at the beginning of the month (October), with Kansai Electric reportedly paying around $18 per Mcf for a shipment from Statoil’s Snohvit terminal in Nor-way, more than half a world away,” notes the study’s author, Mark Young.

“BG is set to benefit from the arbitrage opportunities here, once exports from the Sabine Pass terminal begin in 2015-2016. This arbitrage is in fact the finish line that the various gas-producing countries and companies are striving to reach first. The price gap between Asia and other gas markets will not be so great forever; as the gas market becomes more of a global machine, prices are likely to slowly converge. And with many terminals due on-stream between 2015 and 2016, a timescale for this convergence may have been set,” says Young.

The study notes that until LNG exports become more widespread, domestic producers will no doubt suffer from the rigidity of the gas market compared to the oil market. Natural gas presents significant transportation issues compared to oil; without LNG technology, it is restricted to pipelines, trapping the gas in specific markets. An oversupply, as in the U.S. shale-gas boom, can be fatal for prices.

“The LNG industry will bring liquidity to the gas market, and may provide the spark required to revive this apparently faltering industry,” notes Young. “It will take a long time to see tangible benefits for domestic producers and exporting companies across the board, but the seeds are being sewn for this revival. The promise of LNG exports could also provide some relief for companies that have recently bet big on U.S. shale-gas plays in the M&A market.”

Gas-producing companies and willing importers from Asia are likely to lead the scramble for liquefaction capacity as American terminals approach export startup. “In terms of Asian markets for LNG, Japan is the most obvious, and its power companies are most in need of the fuel,” notes Young.

“Tokyo Electric Power Co. (Tepco), for example, has been among the most vocal in the news recently, with claims that it will be looking to take up interests in terminals and buy into LNG export capacity around the world to feed its clients’ energy needs. India and Pakistan have also been very active in trying to build import terminals, as both are looking at energy shortages in the near future. GAIL, one of India’s state-owned entities, has been regularly linked with shale-gas acquisitions in North America in recent months, looking to secure gas supply for its country.”

The U.S. is not the only country in the race to export LNG. Australia is set to overtake Qatar as the world’s biggest LNG-export- ing country by the end of 2016 with current construction plans, according to the report. Canada is also taking its first official steps on the road to exporting gas, with three applications to build terminals at Kitimat, British Columbia. The most advanced is led by Apache Corp., in co-operation with Encana Corp. and EOG Resources Corp.

Also of note are gigantic gas discoveries offshore Mozambique, separate multitrillioncubic-feet finds being made by consortiums led by Anadarko and Italy’s Eni. Both operators have mentioned the possibility of building an LNG export terminal to monetize the gas, with India a likely destination.

But although the U.S. is joining the race relatively late, it is not lagging. BG is one of the biggest LNG companies in the world, with extensive contacts and favourable relationships in the Asian markets, notes Young.

“U.S. infrastructure is also at a much higher standard, the Sabine Pass terminal is after all already attached to the pipeline network in its capacity as an operational, albeit idle, import facility.

“This will be more of a hurdle for Australia, and Queensland in particular, where the huge coal-seam gas reserves in the region have seen concrete plans for no less than five terminals to be built in Gladstone. The area will need to include extensive pipeline construction projects before the terminals are fed enough to reach full capacity.”