Page 6 - NorthAmOil Week 09 2023

NorthAmOil COMMENTARY NorthAmOil

US positioned to become world’s

largest LNG exporter

The US seems set to remain a global leader in LNG exports for some time, with three

more export terminals likely to reach the final investment decision stage this year

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

P6 www. NEWSBASE .com Week 09 02•March•2023