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US To Become The Largest LNG Exporter Of The World In 2022


12/28/2021


US To Become The Largest LNG Exporter Of The World In 2022
In 2022, the United States is expected to overtake Qatar and Australia as the world's largest LNG exporter, and it may keep that position for years to come.
 
In a year when China and other huge countries in Europe and Asia were scrambling to find enough supply for heating and power generation, the US had plenty - and it will continue to rise in the coming years.
 
Since 2015, global LNG demand has risen to new highs every year, owing primarily to rising demand in China and the rest of Asia. Much of that worldwide need has been fulfilled by gradually expanding LNG exports from the United States, which have set new records every year since 2016 and are expected to do so again in 2022.
 
US LNG exports are expected to reach 11.5 billion cubic feet per day (bcfd) in 2022, according to the US Energy Information Administration. 
 
According to Goldman Sachs analysts, this would represent around 22 per cent of the estimated global LNG demand of 53.3 bcfd next year, outpacing both Australia and Qatar, the two largest producers at the moment. 
 
For a day, one billion cubic feet of gas is enough to power nearly 5 million American households.
 
The United States is expected to remain the largest LNG exporter by capacity until around 2025 when Qatar's North Field project is expected to begin operations. (GRAPHIC: Liquefied Natural Gas Exports) However, if some US developers start building new LNG export plants, the US may not relinquish its position as the world's largest LNG exporter.
 
In recent months, major US developers such as Cheniere Energy, the country's top exporter, have signed a slew of long-term LNG sales agreements that should help them obtain the funding they need to move through with further multibillion-dollar projects.
 
By 2022, the United States is predicted to surpass Australia and Qatar as the biggest exporter of liquefied natural gas (LNG).
 
By 2022, the United States is predicted to surpass Australia and Qatar as the largest exporter of liquefied natural gas (LNG).
 
Chinese customers accounted for a large portion of the long-term contracts.
 
"After years of avoiding a commitment to buy U.S. LNG, Chinese companies have finally made their move," said Nikos Tsafos at the Center for Strategic and International Studies (CSIS).
 
According to US energy data, the majority of US LNG exports in 2021 went to Asia, with roughly 13 per cent being exported to South Korea, 13 per cent to China, and 10 per cent to Japan. 
 
In 2020, the top three export destinations for US LNG were the same: 13 per cent to South Korea, 12 per cent to Japan, and 9 per cent to China.
 
According to Charlie Riedl, executive director of the Center for Liquefied Natural Gas, the surge in US LNG exports helps consumers throughout the world to "have more access to an abundant and reasonably-priced product that helps ease the world's present supply shortage" (CLNG).
 
In 2021, gas prices around the world hit new highs as utilities tried to lock in LNG cargoes to replenish Europe's depleted reserves and fulfill Asia's high demand. Gas futures in the United States also climbed, reaching a 12-year high in October.
 
However, after good weather in early December, natgas inventories in the United States were refilled, and prices in other countries are now 11 times higher.
 
Natural gas, according to the oil and gas industry, is a less polluting fossil fuel than coal or oil. Because gas burns cleaner than coal, it reduces emissions, however, unburned gas or methane discharged into the atmosphere contributes significantly to global warming.
 
As they fulfill expanding energy demand while moving from coal to cleaner renewables, utilities throughout the world have been using gas to keep electricity rates relatively low and maintain dependable electric systems. However, due to a scarcity of LNG, other countries, such as China, have increased coal output.
 
(Source:www.cityam.com)