Page 7 - NorthAmOil Week 09 2023

NorthAmOil COMMENTARY NorthAmOil

has created a rosy outlook for US LNG exports. facilities that will come online before 2030. A
Europe has invested heavily in LNG infrastruc- joint venture between QatarEnergy and Exxon-
ture to support an increase in imports of the Mobil at Golden Pass in Texas with a capacity of
super-chilled fuel as it continues its shift away 18mn tpy is expected to come online in late 2024.
from Russian gas following the invasion of Meanwhile, the first phase of Venture Global
Ukraine. If all planned projects and expansions LNG’s Plaquemines is anticipated to commence
meet current timelines, Europe’s LNG import operations in 2024, adding 13.3mn tpy of capac-
capacity could rise by 20% to reach 250mn tpy ity, and be fully operational in 2025 with a total
by the end of 2023. capacity of 20mn tpy. Cheniere Energy’s expan-
Meanwhile, a strong market for LNG imports sion at its Corpus Christi, Texas facility slated
is also developing in Asia. China’s LNG imports for 2025 will add an additional 1.6mn tpy of
are forecast to rise by at least 9% as the country supply. The planned new
rebounds from Covid-19, while India is seeking The planned new capacity puts the US in top
to raise LNG imports by an additional 12mn tpy position for global LNG supply additions as far capacity puts the
as it undergoes fuel changing and expands gas as 2030. It is followed by Qatar, Mozambique US in top position
distribution networks in cities. and Canada, according to energy consultancy
A handful of other Asian countries are also set Tudor Pickering Holt & Co. for global LNG
to become new LNG importers. The Philippines US exports of LNG will also get a boost from
is scheduled to bring three terminals online this the restart of Freeport LNG, the country’s sec- supply additions
year, while a total of seven have been approved ond-largest terminal, which has been offline
for construction. since June after an explosion and fire. On Feb- as far as 2030.
Vietnam is also expected to become an LNG ruary 21, Freeport received approval from fed-
importer this year as it looks to phase out coal- eral regulators for the partial restart of two of the
fired power. Additionally, Sri Lanka has reached three gas liquefaction units.
agreement with New York-based New Fortress For the US, this meteoric growth in its LNG
Energy for construction of an LNG import ter- export industry is remarkable, since the coun-
minal near Colombo that is scheduled to com- try was an LNG exporter until 2016, when nat-
mence operations before the end of the year. ural gas discoveries and production flow shale
turned it into an exporter.
Supply additions The US Energy Information Administration
Beyond the addition of the three LNG export (EIA) projects the country should ship about
terminals in Port Arthur, Lake Charles and Rio 11.8 bcf (334 mcm) per day in 2023 and 12.6 bcf
Grande, the US has a number of other export (357 mcm) per day in 2024.™

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