An LNG Blitz is Underway in North America

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Across the board, projects related to liquefied natural gas in North America are in an expansion phase. From Vancouver to the U.S. Gulf Coast, there's no shortage of developments related to the super-cooled form of natural gas.

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Gulf Coast Potential Keeps Expanding

The North American liquefied natural gas (LNG) sector has beem stimulated by international investments from China and support for more deliveries from the U.S. Gulf Coast, already an epicenter of exports.

The United States is the world leader in exports of LNG. Federal data show LNG exports are on pace to increase by around 8% next year, while Industrial Info in its NATGAS Today report for Wednesday showed another 6 billion cubic feet per day (Bcf/d) in feed stock would be needed to keep pace with expansion projects along the U.S. Gulf Coast.

Expansions are already underway. A filing from the U.S. Securities and Exchange Commission showed Cheniere Energy was cleared to introduce natural gas into the seventh train, or liquefaction unit, at its Corpus Christi LNG export project in south Texas.

Once all seven units are up and running at full tilt, data from Industrial Info Resources show the facility will be able to produce 10.5 million metric tons per annum (MPTA) of gas in the liquid form and include on-site storage.

Elsewhere, Australian energy company Woodside on Wednesday said its Louisiana LNG facility is 28% completed and first deliveries are expected before the end of the decade.

Louisiana LNG is already sanctioned for deliveries. If completed as expected, it would have an export potential of about 5.2 MPTA. Woodside added that it signed five long-term charters for LNG carriers that would support the project once operations begin in 2029.

The U.S. sector may be facing pressure, however. Federal estimates show LNG exports are on pace to expand, though natural gas production isn't keeping up. Elsewhere, a Canadian government bent on expanding its trade opportunities outside North America is pegging its ambitions on deliveries from British Columbia.

Asian Interest Strong in British Columbia

On Tuesday, the Vancouver Sun reported that PetroChina may be interested in a 15% stake in the LNG Canada facility, one of the few facilities in North America that can deliver LNG from the Pacific Coast.

Proceeds, the report said, would go to the second phase of operations at LNG Canada.

"The expansion, which would double the plant's output, is gaining urgency as the war involving Iran and the closure of the Strait of Hormuz -- a key route for about a fifth of global LNG shipments -- leave the market facing a supply crunch," the report read.

IIR finds the LNG Canada facility can produce 14 million metric tons of gas in the liquid form annually from two trains located in Kitimat, British Columbia. The proposed addition of two more liquefaction units--trains 3 and 4--has an investment value of US$12.5 billion.

Fluor Corporation and its joint venture partner JGC Corporation said they received a limited notice to proceed with the proposed Phase 2 expansion. The same team played a central role in the initial developments. LNG Canada will make a final investment decision (FID) on the expansion of its production and export facility by the end of this year.

By the Numbers

• $12.5 billion in investment value for LNG Canada expansion
• 10.5 MPTA expected from Corpus Christi LNG

Key Takeaways

• North American LNG potential seems to be growing by the day
• The U.S. market could get squeezed as LNG exports outpace gas production gains

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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) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).