North American LNG Race in High Gear

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)

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Summary

Woodside gets an extension for exports from its planned Louisiana LNG facility. Canada, meanwhile, boasts the only North American facility currently exporting LNG to Asian markets.

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Woodside Gets a Break

Developments across North America help highlight the growing importance of the potential to support energy security with liquefied natural gas (LNG), though both Canada and the United States are in something of a competition.

The U.S. is the world leader in exports of LNG. Sustained exports during the height of the war in Ukraine helped ensure energy security in the European economy looking to break its former reliance on Russian natural gas imports.

President Donald Trump in one of his first acts of office this year created a council of energy dominance that's helping push more LNG facilities across the finish line. On Tuesday, the U.S. Department of Energy (DOE) gave Woodside Energy (Perth, Australia) another 44 months to start LNG exports from its U.S. facility to countries lacking a U.S. free-trade deal.

Woodside made a final investment decision (FID) on the Louisiana LNG facility in April, with the first batch of super-cooled natural gas available for exports initially expected by 2029, though that timeline could slip. The facility is considered large-scale, with an export potential of 5.2 million metric tons per annum (MMPTA). Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about Louisiana LNG--including capacities, investment values and necessary equipment--in a detailed project report and plant profile.

"It is exciting to take this action to provide the needed runway for this project to fully take off and realize its potential in providing reliable and secure energy to the world," said Kyle Haustveit, assistant secretary of the Office of Hydrocarbons and Geothermal Energy at the DOE.

Gulf Coast facilities help address energy demands in Europe, though Trump said during a tour of Asia last month that China, the second-largest economy behind the U.S., may be keen on tapping U.S.-sourced LNG.

China, however, is among the major economies still trading with Russia for oil and natural gas. In September, both sides signed a deal for construction of the Power of Siberia 2 natural gas pipeline, which could send some 4.8 million cubic feet per day to China.

Subscribers can see the related project reports here.

The Trump administration also put a lot of political capital behind an LNG export facility in Alaska, though construction through the Alaskan tundra is complicated by a warming climate.

Enter Canada

Canada is already exporting the super-cooled gas from the LNG Canada facility on the coast of British Columbia. A handful of other facilities may be close behind.

The developers of the planned Cedar LNG facility in British Columbia reached a supply deal with Malaysian energy company Petroliam Nasional Berhad, better known as Petronas (Kuala Lumpur), last month.

Petronas signed a 20-year agreement with Pembina Pipeline Corporation (Calgary, Alberta) to secure 1 MTPA of LNG from the Cedar LNG facility, which will be a floating facility with a nameplate capacity of about 3.3 MTPA.

Subscribers can learn more by viewing the project report and plant profile.

Elsewhere, Petronas on Wednesday completed the sale of its 20% interest in the LNG Canada facility to MidOcean Energy (Houston, Texas).

LNG is part of a trade diversification effort under way in Canada. Its prime minister, Mark Carney, has classified LNG as something in the national interest. The nation is already beating the U.S. to the race to tap Asian markets, and Carney himself has prioritized deep cuts to U.S. trade.

By the Numbers

• 44-month extension for Louisiana LNG
• 5.2 MTPA expected by 2029
• 4.8 million cubic feet per day to China from Russia

Key Takeaways

• The DOE gives relief to Woodside.
• Several U.S. LNG projects are in the works.
• Canada is winning the race to tap Asia.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).