The Energy Information Administration (EIA) has recognized that during the first half of 2022, the United States toook the top spot the lead exporter of Liquefied natural gas (LNG). Data from the CEDIGAZ confirmed this assertion by the EIA.
The supply of Liquefied natural gas to Europe by the United States has continued to increase steadily despite the war crisis in Ukraine. During the first half of the year, it was noted that the Liquefied natural gas exports increased by 12% to an average of 11.2 billion cubic feet per day (bcfd). This resulted in an increase in demand, prices, and Liquefied natural gas export capacity.
According to the EIA,
“About 71% of U.S. LNG exports went to the European Union and Britain during the first five months of this year”
The effect was mainly from Europe which helped boost the LNG exports. This is because reports indicate that Europe has been struggling to store away enough Liquefied natural gas in anticipation of the winter period. Some of the contributing factors to the Liquefied natural gas crisis in Europe are the actions by the US and its allies on Moscow. Due to the sanctions, Russia has tremendously reduced Liquefied natural gas shipments to Europe.
Global LNG Trends Hit by Russia-Ukraine War.
The LNG trend in the US, was not abrupt rather the growth has been steadily increasing over the past couple of years. this is especially with the worldwide efforts by countries to move away from dirtier coal plants.
With increased LNG export capacity the US is expected to put up new facilities at least by 2024. This is because it takes a couple of years to bring in and set up new equipment.
The EIA estimates that liquefaction capacity averaged 11.4 bcfd, as of July, with a shorter-term peak capacity of 13.9 bcfd. As of June, the exports had lowered after an outage caused by fire occurred at the Freeport Liquefied natural gas export facility. The facility is expected to resume partial LNG operation by early October 2022.
Further, according to the EIA reports;
“U.S. LNG total base load export capacity increased from less than 1 billion cubic feet per day (Bcf/d) in 2015 to about 10.78 Bcf/d at the end of 2021. The total peak export capacity in 2021 was about 12.98 Bcf/d. In 2015, total U.S. LNG exports were about 28 Bcf to seven countries.”
The installation capacity for the US in terms of LNG exports has also increased by about 1.9 bcfd since November 2021. This also includes new trains at Cheniere Energy’s Sabine Pass, Venture Global’s Calcasieu Pass, and higher LNG production capacity at Sabine Pass and Corpus Christi facilities. The foresight is that the Liquefied natural gas trend in the US is likely to persist in the next couple of years.