U.S. Gas Production Steady Amid LNG Boom

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--As the U.S. energy sector pushes forward with new liquefied natural gas (LNG) export facilities, data from IIR Energy show total U.S. gas production remains supportive of foreign deliveries.

Data published Friday by IIR Energy show total inland natural gas production in the United States averaged 108 billion cubic feet per day (Bcf/d), after falling slightly to 107.4 Bcf/d on August 5 due to regular pipeline maintenance.

Gains were centered around the Appalachia Basin covering parts of Ohio, New York, Pennsylvania and West Virginia. Compared with the same period last year, total regional production is up about 6.5%, data show.

The Appalachian Basin is the largest inland gas producer in the United States by volume. Federal estimates show the basin should produce 36.4 Bcf/d this year, rising to 37.2 Bcf/d by next year.

By Monday, U.S. inland natural gas production remained steady at 108 Bcf/d, though that's up 1.1 Bcf/d from the July average. The amount of feed gas running to LNG facilities reached 17 Bcf/d, just 0.3 Bcf/d from a record set April 9.

The United States is the largest gas producer and exporter of LNG in the world, and President Donald Trump wants more. Since his return to the White House for a second, non-consecutive term in office, Trump has dusted off an export facility in Alaska and permitted several projects along the Gulf Coast.

Among the latest to march toward the finish line, developers of the Coastal Bend facility said they expected to start the pre-filing process with the federal regulators tasked with issuing permits for deals with countries lacking a U.S.-free trade deal yet this year.

If completed, Coastal Bend would have an export capacity of 22.5 million metric tons per year from as many as five separate trains, or liquefication units. On Monday, developers said they've selected global engineering firm EXP (Chicago, Illinois) to lead the environmental consulting for the facility.

Coastal Bend in June said it started the initial development of the facility slated for the southern coast of Texas. Along with storage, the plant would feature carbon, capture and storage technology that would lower its overall environmental footprint.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the related project reports.

The Gulf Coast may be getting crowded with new future developments, though natural gas levels are on pace for a decline, despite the gains from the Appalachia region. Total U.S. gas production, including offshore, is on pace to increase 2.5% from year-ago levels to average 116.1 Bcf/d, but decline marginally to 115.9 Bcf/d by next year. Slight declines from the Bakken and Haynesville plays overcome gains elsewhere in the country.

Data from the European Commission, meanwhile, show U.S. natural gas claims second place in terms of market share in the bloc, behind Norway. Trump recently brokered a trade deal with European countries that calls for billions of dollars of LNG purchases, though the goalpost is viewed as out of reach and supply agreements are the result of corporate, not government, negotiations.

Headwinds may be apparent on the supply side. With Canada looking to get in the game, the International Energy Agency has warned of an LNG supply overhang that could linger into the 2030s.

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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).