LNG
is projected to dominate U.S. natural gas exports by the early-2020s,
according to data released by the Energy Information Administration.
Export capacity has been the main driver in 2017 and is expected
to remain so in 2018, with more than $88bn in LNG projects are
currently planned, being built or in operation across the U.S.
The US stands to become the world’s third-largest exporter by 2020,
when it’s expected to ship about 8.3 billion cubic feet a day of
capacity, or 14% of the world’s share, according to Energy Aspects Ltd.
After 2020, U.S. exports of LNG grow at a more modest rate as
U.S.-sourced LNG becomes less competitive in global energy markets.
The House Natural Resources Committee’s Subcommittee on Energy and
Mineral Resources held a hearing at the end of February on “Liquefied
Natural Gas and U.S. Geopolitics” examining the impact of LNG exports on
national and international security. At the close of the hearing, Sean
Strawbridge, Port of Corpus Christi CEO, released the following
statement:
“We applaud Subcommittee Chairman Paul Gosar for his leadership in
convening this important discussion. Given the extent of our resource
wealth, it makes sense for the U.Ss to meet our allies’ natural gas
needs and lessen the ability of unfriendly foreign nations who use
energy supply as a geopolitical weapon. Increased LNG exports will be a
boon for the U.S. economy.
“As the nation’s largest exporter of crude oil, we have seen the
value and economic impact of energy exports. Our $327m channel expansion
project — which was approved in the President’s 2019 budget — and the
ongoing Harbor Bridge replacement project will position the port for
additional growth in the future with LNG export facilities as well.”
He cited the work of companies like Cheniere and Tellurian who are
developing projects that stand to position the U.S. as a dominant force
in the global energy markets.
“We hope that our policymakers continue to recognize the
importance of these projects and what they represent for our future
security.”
The hearing featured representatives from Cheniere Energy and
Tellurian Inc. On Feb 9, 2018, Cheniere announced a pair of LNG sale and
purchase agreements with China National Petroleum Corporation. The deal
will result in Cheniere — in part, through Corpus Christi Liquefaction —
providing 1.2 million tonnes of liquefied natural gas to the Chinese
company annually.
In 2017, the U.S. became a net exporter of LNG for the first time
since 1957. Earlier this month, the U.S. Energy Information
Administration (EIA) found in its 2018 Annual Energy Outlook that
American LNG export facilities will play a key role in meeting global
demand and driving continued domestic natural gas production.
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