Page 4 - GLNG Week 08 2023

GLNG COMMENTARY GLNG

US positioned to become world’s

largest LNG exporter as three more

projects look set to be approved

The US is poised to be the driving force behind global LNG supply growth over
the next decade.

US THE US is poised to take over top spot as the Brownsville, Texas.
world’s biggest exporter of liquefied natural gas Energy Transfer has revealed it has signed
WHAT: (LNG) for years to come as three proposed LNG deals with Shell, China’s ENN Group and Swiss
The US is poised to take export terminals inch closer to receiving finan- commodity trader Gunvor. Meanwhile, Sempra
over top spot in LNG cial approval. With the largest global LNG supply stated in January that it had reached agreements
exports with at least three additions out to 2030, the US is on track to easily with Poland’s Polski Koncern Naftowy Orlen SA,
new terminals expected surpass Australia. ConocoPhillips and German utility RWE AG,
to be given the greenlight US LNG exports reached 10.6bn cubic feet allowing it to proceed with the first phase of Port
this year. (300mn cubic metres) per day in 2022, placing Arthur. Additionally, NextDecade said it has
it just behind global leader Australia, which reached deals for almost two-thirds of the first
WHY: exported 10.7 bcf (303 mcm) per day and slightly phase of Rio Grande after coming to agreements
Soaring demand ahead of Qatar, which sent 10.5 bcf (297 mcm) with ExxonMobil, Shell, Portugal’s Galp Energia
in Europe and Asia per day abroad last year. and Japan’s Itochu.
combined with natural And with a rosy outlook ahead for global With these long-term agreements, all three
gas discoveries and LNG demand, particularly in Europe and Asia, developers appear to have enough deals in place
production from shale US developers are seeking to ramp up produc- to secure debt financing for the projects from
has seen the US switch tion. Around a dozen developers are hoping to banks, industry analysts told Reuters. Large
from an LNG importer make final investment decisions (FIDs) in 2023. LNG export terminals typically take about four
to becoming the world’s Several of these projects have been stalled before, years to build, so supply from these facilities
second largest exporter. but are likely to move ahead this time with the won’t hit the market until likely 2027.
improved market outlook.
WHAT NEXT: Already three proposed projects are believed Growing LNG appetite in Europe and Asia
The US is forecast to to have found enough customers to be given the Increased demand both in Europe and Asia
export around 11.8 bcf greenlight this year according to Reuters. The has created a rosy outlook for US LNG exports.
per day this year and 12.6 projects include Energy Transfer LP’s 16.45mn Europe has invested heavily in LNG infrastruc-
bcf per day in 2024, while tonne per year Lake Charles LNG terminal ture to support an increase in imports of the
the three new projects in Louisiana, Sempra Energy’s 11mn tpy Port super-chilled fuel as it continues its shift away
should come online in Arthur export facility in Texas and NextDec- from Russian gas following the invasion of
2027. ade Corp’s 27mn tpy Rio Grande terminal in Ukraine. If all planned projects and expansions

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