Page 6 - NorthAmOil Week 06 2022

NorthAmOil COMMENTARY NorthAmOil

US on track for LNG dominance

The US is on track to be the world’s leading producer of LNG this year, with the

Calcasieu Pass terminal preparing to export its first cargo

US THE US is on track to be the world’s leading filings with the FERC show that it produced first
producer of LNG this year, having already been LNG at Calcasieu Pass on January 19. It is now
WHAT: the leading global exporter of the fuel in Decem- seeking to load its first cargo on or after Febru-
The US is on course to ber 2021. The country is anticipated to over- ary 9.
be the world’s leading take Australia and Qatar thanks to the start-up The 10mn tonne per year (tpy) Calcasieu Pass
producer of LNG in 2022. of additional liquefaction capacity on the US LNG terminal was sanctioned in 2019, and at 29
Gulf Coast in 2022, and recent developments months from final investment decision (FID) to
WHY: show that it is on course to achieve this. Existing first LNG, Venture Global now holds the record
The Calcasieu Pass LNG producers of the super-chilled fuel also have an for the fastest construction of a large-scale
terminal is preparing additional incentive to maximise feed gas flows greenfield LNG terminal, according to consul-
to come online, while to their plants in an effort to meet strong demand tancy Wood Mackenzie.
Sabine Pass LNG is from Europe, which continues to grapple with According to consultancy Rystad Energy, feed
seeing record gas flows. an energy crisis and heightened geopolitical ten- gas supply to Calcasieu Pass had risen above
sions. (See NorthAmOil Week 04) 100,000 cubic feet (2,832 cubic metres) per day
WHAT NEXT: The US’ dominance of the LNG market will as of February 1.
Current price and prove relatively short-lived as Qatar expands Calcasieu Pass will be the seventh LNG export
demand trends are its liquefaction capacity further in the coming terminal to enter service in the Lower 48 states
improving prospects years. But on the other hand, current natural gas and the first since Cameron LNG and Freeport
for the construction of demand and price trends are helping to improve LNG came online in 2019. It will be the second
additional US export the prospects for yet-to-be sanctioned liquefac- greenfield terminal to enter service in the Lower
plants. tion capacity in the US. 48 after Cheniere Energy’s Corpus Christi plant
– with all other currently operational terminals
Additional capacity having been converted from import facilities.
Last week, Venture Global LNG requested Venture Global is not the only company pre-
authorisation from the US Federal Energy Reg- paring to start up new US liquefaction capacity.
ulatory Commission (FERC) to load the first Cheniere this week announced substantial com-
cargo at its newly built Calcasieu Pass LNG pletion of its sixth train at Sabine Pass – the larg-
export terminal in Louisiana. The company’s est LNG export terminal in the country. Train

P6 www. NEWSBASE .com Week 06 10•February•2022