The USA will almost triple the export of its liquefied gas

Rising global demand for liquefied natural gas is set to nearly triple US liquefied natural gas exports over the next decade as LNG buyers seek diversification and a reliable, low-cost supply. So the US will be the economic and energy winners of the political confrontation with Russia, says Wood Mackenzie , an energy consultancy, in a new report released this week.

Next year, US LNG exports are expected to further increase from today's 310 million cubic meters/day and reach over 820 million cubic meters/day in 2033, almost tripling.

“ Expanding the North American gas market over the next decade will be equivalent to adding two new Permian basins ,” said Dulles Wang, director of Americas Gas and LNG Research at Wood Mackenzie.

“ As Europe diversifies towards more secure sources of supply and international buyers seek reliable, low-cost supplies, North America is poised to make its contribution ,” Wang added.

This year, the United States delivered its findings in the wake of the Russian invasion of Ukraine and Europe's withdrawal from Russian gas pipelines, supplies of which have nonetheless been dwindled by Russia. High demand in Europe, high natural gas prices and rising export capacity made the US the world's largest LNG exporter in the first half of 2022, the US Energy Information Administration said in July . The US is shipping record volumes of LNG to Europe to help EU allies fill gas depots before winter.

For the first time in history, the European Union imported more LNG from the United States in June than gas via pipeline from Russia as Moscow reduced its supplies to Europe. The majority of US LNG exports are now directed to the EU and the UK, which account for about 70% of all US LNG shipments.

This is in stark contrast to previous years, when most of America's LNG output was destined for Asia, where demand was strongest. The EIA expects continued growth in LNG exports through 2023.

“ Although storage stocks in Europe are now largely full, significant volumes of LNG will still be needed in the coming months to maintain adequate winter supply now that Russia has largely halted pipeline exports to Europe the administration said earlier this month.

US LNG export capacity is set to grow through 2025, as three projects have recently started: Golden Pass LNG, Plaquemines LNG, and Corpus Christi Stage III. Once completed, the three export projects will increase US peak LNG export capacity by 5.7 Bcf/d by 2025, the EIA found in September.

“We expect that after '27 the demand for LNG will continue to grow and it is expected that in 2030 it will be 810 million cubic meters/day. Considering the current situation in Europe, which will lead to an increase in long-term contracts, and the continued use in Asia, this hyper-growth scenario seems quite reasonable to me,” Kinder added.

This is a huge increase, and most of it will occur in Texas and Louisiana, he noted.

Brendan McCracken, CEO of Ovintiv, argues that there will be lasting demand for US gas globally: "I think this is a fundamental and lasting demand on US gas, which preceded the Russian invasion of Ukraine," he said McCracken during the earnings press conference earlier this month.

“And I think it's pretty easy to forget that because of the importance of that invasion. But if you look at what was happening in Europe to gas prices before the invasion, there was already a dramatic shortage going on,” said the CEO of one of North America's largest independent oil and gas producers. . “ What we see is demand for North American gas supply and global demand for LNG, whether in Europe or Asia or other parts of the developing world… This is an enduring price that we see developing for decades .”

So the conflict with Russia has a long-term winner: the USA, which once again becomes one of the dominant countries from an energy point of view and controls the energy supply of the EU.

---

---

The article The USA will almost triple the export of its liquefied gas comes from Scenari Economici .

---

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gli-usa-triplicheranno-quasi-lexport-del-proprio-gas-liquefatto/ on Mon, 21 Nov 2022 08:00:33 +0000.