The capacity for North American LNG exports is set to double within the next three years to 24.4 billion cubic feet per day (Bcf/d) from 2023 levels, the EIA said on Tuesday.
The forecast assumes that all LNG projects that are currently under construction begin operating as planned in Mexico, the United States, and Canada.
The EIA expects the bulk of the export expansion will be in the United States at 9.7 Bcf/d, with Mexico and Canada accounting for the remaining 3.3 Bcf/d. This is based on the 10 new projects currently under construction in North America-5 of which are in the United States, including Plaquemines Phases I and II, Corpus Christi Stage III, Golden Pass, Rio Grande Phase I, and Port Arthur Phase I.
While North America is ramping up its LNG export capacity, global demand for LNG is expected to increase by more than 50% by 2024, according to Shell.
Qatar, Australia, and the United States remain global leaders in the LNG industry. But it is Qatar that will account for 40% of all new LNG supplies globally by 2029, its government has said, as major projects like its North Field expansion. This would lift its export capacity by 85%.
And it already has a lot of future deals on the book. QatarEnergy has signed a number of long-term LNG deals, the most recent of which was one with Kuwait in a 15-year deal. In its quest for LNG dominance, Qatar has also chartered dozens of new ships to carry those LNG exports.
In July, a federal judge overturned President Biden's January pause on reviewing and approving LNG export applications, arguing that the pause was "completely without reason or logic".
U.S. LNG exports have been touted as a fossil fuel that will trigger a reduction in CO2 emissions from the U.S. power sector, emitting 145 million fewer metric tons by 2030, according to researchers in a 2024 paper titled The Market and Climate Implications of US LNG Exports.
By Julianne Geiger for Oilprice.com
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Comments
Qatar has already a lot of future deals on the book. QatarEnergy has signed a number of long-term LNG deals primarily with China, Asia-Pacific countries, Germany and Kuwait. In its quest for LNG dominance, Qatar has acquired the largest LNG tanker fleet and has also chartered dozens of new ships to carry those LNG exports.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert