Page 6 - GLNG Week 05 2023

GLNG COMMENTARY GLNG

According to the US Energy Information day (1.2 Bcf/d,), and companies with trading
Administration (EIA), in 2022 SPAs signed affiliates – which will presumably deliver LNG
for US LNG from eight prospective projects cargoes to multiple destinations--committed
totalled about 170mn cubic metres per day. to purchase 85mn cubic metres per day (3.0
Two of the projects are under construction, four Bcf/d).
have received regulatory approval, and two are EIA noted that, because of the Ukraine war,
proposed. Europe increased its LNG imports by 66%
Those under construction are Cheniere’s Cor- 167mn cubic metres per day (5.9 Bcf/d) in 2022
pus Christi Stage 3 and Venture Global’s Plaque- compared with 2021. This is according to data
mines. The approved projects are Delfin’s Delfin from Cedigaz. EIA cited the reduced pipeline gas
LNG, Energy Transfer’s Lake Charles LNG, Port deliveries from Russia and record prices at Euro-
Arthur Phase 1, and Rio Grande LNG. The pro- pean trading hubs. Europe will be able to receive
posed projects are Venture Global’s CP2 and 34% more LNG in 2024 compared with 2021, by
Commonwealth LNG’s Commonwealth LNG. expanding its import capability, said EIA.
Almost three-quarters (or 74%) of the SPAs According to BloombergNEF, the US’s export
signed with prospective projects in 2022 are for capacity will eclipse Qatar’s by 2027. “The US
20-year terms beginning when the project starts will become more of a global gas player,” said
commercial operations. The earliest start date BloombergNEF’s lead US gas analyst, Enri-
would be 2024. As much as 92% of the SPAs are que Gonzalez. “Unlike in the past, prices in its
for LNG cargoes to be sold on a free-on-board domestic gas market will be more connected
basis, which means the buyer pays for and with the rest of the world,” he said.
receives the LNG at the loading terminal. The US’s export capacity is expected to reach
Asian companies– likely to deliver LNG car- 169 Mtpa by 2027, said the research provider.
goes to Asia -- committed to purchase 51mn “The US is in the lead because of its flexible con-
cubic metres per day (1.8 Bcf/d) of the volumes tract terms and the competitive landscape of
contracted with these prospective LNG projects project developers,” said BloombergNEF’s global
last year. Companies in Europe (which EIA LNG specialist, Michael Yip. As much as 89% of
expects will deliver LNG cargoes to Europe) LNG SPAs in 2022 were for US-based projects,
committed to purchase 34mn cubic metres per said BloombergNEF. ™

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