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US to become world’s largest LNG exporter by 2022

FILE PHOTO: A liquefied natural gas (LNG) tanker leaves the dock after unloading at PetroChina's receiving terminal in Dalian
FILE PHOTO: A liquefied natural gas (LNG) tanker leaves a berth after unloading at PetroChina’s receiving terminal in Dalian, Liaoning province, China July 16, 2018. REUTERS / Chen Aizhu / File Photo

December 21, 2021

By Scott DiSavino

(Reuters) – The United States will become the world’s largest exporter of liquefied natural gas (LNG) by 2022, surpassing Qatar and Australia, and could hold that title for years to come.

In a year in which China and other major economies in Europe and Asia scramble to find enough supplies for heating and power generation, the United States is facing multiple supplies – one will increase in the coming years.

Global LNG demand has hit a record high every year since 2015, mainly due to surging demand in China and the rest of Asia. Much of that global demand has been met by steadily increasing U.S. LNG exports, hitting new annual records since 2016 and poised to continue into 2022.

The U.S. Energy Information Administration forecasts that U.S. LNG exports will reach 11.5 billion cubic feet per day (bcfd) by 2022. This would account for about 22% of the world’s projected LNG demand. world is 53.3 bcfd next year, according to analysts at Goldman Sachs and will outpace both Australia and Qatar, the two biggest exporters today.

One billion cubic feet is enough gas to power about 5 million homes in the United States for one day.

The United States will remain the largest LNG exporter by capacity until around 2025, when Qatar is able to regain the lead once its North Field expansion kicks in. But if some US developers start building new LNG export plants, the US may not give up the crown.

Major US developers such as Cheniere Energy, the largest US exporter, have signed multiple long-term agreements to sell LNG in recent months to help them secure the financing needed to continue with their projects. billions of dollars worth of projects. (Graphic: US will soon be top dog in LNG export race, https://fingfx.thomsonreuters.com/gfx/ce/akvezowxwpr/Pasted%20image%201640016831799.png)

Many long-term contracts come from Chinese customers.

“After years of dodging commitments to buy US LNG, Chinese companies have finally made their move,” said Nikos Tsafos at the Center for Strategic and International Studies (CSIS).

So far in 2021, most U.S. LNG exports have gone to Asia, with about 13% going to South Korea, 13% going to China, and 10% going to Japan, according to U.S. energy data. Those are also the top three destinations in 2020 as 13% of US LNG goes to South Korea, 12% to Japan and 9% to China.

The growth in U.S. LNG exports gives people around the world “greater access to an abundant and affordable product,” said Charlie Riedl, executive director of the Center for Liquefied Natural Gas (CLNG). reasonable price, helping to alleviate the current shortage of supply in the world”.

World gas prices continue to hit record highs in 2021 as utility companies try to lock in LNG shipments to rebuild low inventories in Europe and meet massive demand in Asia. U.S. gasoline futures prices also rose, reaching a 12-year high closing in October. But after mild weather in early December, U.S. natgas stocks have replenished and overseas prices are now high. 11 times more. (PICTURE: Natural gas prices around the world [NGA/]

The oil and gas industry considers natural gas to be a less polluting fossil fuel than coal or oil. Gas is cleaner, so switching from coal will reduce emissions, although unburnt gas or methane released into the atmosphere contributes largely to global warming.

Companies around the world have been using gas to keep electricity prices relatively low and maintain a reliable grid as they meet growing energy demand while transitioning from coal to energy cleaner regeneration. However, some countries, including China, have ramped up coal production due to a lack of LNG availability.

Analysts at RBN Energy say three developers are likely to continue with new projects next year: Cheniere’s Phase 3 expansion at Corpus Christi in Texas, Venture Global’s Plaquemines in Louisiana and Tellurian’s Driftwood Inc in Louisiana. (Graphic: Natural gas prices in Europe and Asia, falling in US, https://fingfx.thomsonreuters.com/gfx/ce/dwvkrzbqdpm/Pasted%20image%201640017894174.png)

(Reporting by Scott DiSavino; Editing by David Gregorio)

https://www.oann.com/u-s-to-be-worlds-biggest-lng-exporter-in-2022/?utm_source=rss&utm_medium=rss&utm_campaign=u-s-to-be-worlds-biggest-lng-exporter-in-2022 US to become world’s largest LNG exporter by 2022

Bobby Allyn

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