Will the United States Dominate the Liquefied Gas Market?
The United States became the leading exporter of LNG. By the end of 2022 they will have the largest export capacity in the world. All the details
In December 2021, the United States became, for the first time, the largest exporter of liquefied natural gas (LNG) in the world. It is probably an ephemeral but still important milestone, especially considering that the country has only started selling fuel abroad a few years ago: since February 2016 , to be precise.
THE SHALE REVOLUTION
In less than a decade, Bloomberg writes, the United States has gone from being a net importer of LNG to becoming a major exporter. Thanks to the so-called "shale revolution", that is the technological innovation that has allowed the profitable exploitation of the hydrocarbon deposits contained in shale rocks (the shale, in fact): today the United States is the country that extracts more oil and more natural gas to the world.
THE OUTLOOK FOR 2022
From 2010 to today, gas production has grown by around 70 percent. And by the end of 2022, once Venture Global LNG's Calcasieu Pass terminal goes into operation, America will have the largest LNG export capacity in the world.
THE RECOVERY OF QATAR AND AUSTRALIA
In the coming months, however, it is likely that the United States will be able to cede its leadership of top LNG exporter to Qatar or Australia, whose sales levels in December 2021 were slightly lower than the American ones (7.7 million tons).
DOMINANCE UNTIL 2025
According to the Energy Information Administration (EIA: an agency of the American government), however, in 2022 the United States will have an LNG export capacity of 11.5 billion cubic feet per day. That is – adds Goldman Sachs – about 22 percent of the global demand for this fuel estimated for the current year (53.3 billion cubic feet per day).
For comparison, 1 billion cubic meters is roughly the amount of gas needed to power five million American homes.
It is therefore likely that the United States will remain the largest exporter of LNG from 2022 to 2025. That is, until Qatar regains leadership with the entry into service of the North Field plant, which is being expanded.
THE MAIN PROJECTS FOR LNG
In addition to the Calcasieu Pass terminal, other major LNG projects in the United States are Cheniere's Stage 3 expansion in Corpus Christi (Texas), Venture Global's Plaquemines in Louisiana and Tellurian's Driftwood in Louisiana.
Despite plans to net zero greenhouse gas emissions and promote renewables, Joe Biden's administration will likely continue to support the American LNG industry, overcoming opposition from environmental groups. The shale boom did not make the United States absolutely independent on energy but it certainly reduced its vulnerability from abroad. Dominance in the liquefied gas market is an economic but also a geostrategic issue, writes Axios .
CHINA AND EUROPE
In recent months Cheniere, the largest American LNG exporter, has signed many long-term contracts ( especially with Chinese companies ) that will guarantee him secure income and therefore the stability necessary to proceed with large investments.
The rise in US exports last December was driven by Europe and its sky-high natural gas prices, which prompted the stars-and-stripes LNG carriers to head for the Atlantic Ocean . American LNG usually goes to the more profitable Asian markets.
EXPORT MARKETS IN 2021
In 2021, 1043 loads of LNG left from the American terminals, a record. Half went to Asia and a third to Europe ( Bloomberg data). More specifically, in South Korea (13%), China (13%) and Japan (10%).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/stati-uniti-primi-esportatori-gnl/ on Sun, 09 Jan 2022 07:24:07 +0000.