U.S. LNG Prospects Up on Plaquemines, Alaskan Developments

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

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Summary

The federal government sanctioned a 13% increase in feed gas to support exports from the Plaquemines LNG facility in Louisiana. Alaskan developers still need offtake agreements before making investment decisions.

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U.S. Ups LNG in War Response

The United States, the world leader in liquefied natural gas (LNG) exports, approved an expansion to a project that helped support the industry last year, while developers in Alaska are looking for more offtake agreements.

IIR Energy in its NATGAS Today report for Monday put the total amount of feedstock running to the nine facilities capable of exporting LNG at 19.5 billion cubic feet (Bcf), just shy of the record of 19.6 Bcf set on January 12.

Those volumes have supported energy security in a European economy that was looking to do away with Russian products following the start of the war in Ukraine in 2022. Four years later, the European market is facing new supply-side pressures because of the conflict raging in the Middle East.

U.S. President Donald Trump singled out LNG last year in a strategy of energy dominance. Unlike piped volumes, LNG until now has typically avoided some of the geopolitical issues that can thwart availability.

More is on the way. The federal Energy Department in its monthly market report for March said it expected total LNG exports to increase by 10% from 2025 levels this year.

On Friday, the Energy Department backed "an immediate" 13% increase in exports from the Plaquemines facility in Louisiana to countries without a U.S. free-trade deal.

"At a time when Iran and its terrorist proxies attempt to disrupt the global energy supply, the Trump Administration remains committed to strengthening American energy dominance," Energy Secretary Chris Wright said in a statement.

Operated by Venture Global, the expansion would work out to be an increase of around 0.45 billion cubic feet per day (Bcf/d). IIR Energy finds the facility can handle 3.85 Bcf/d in feed gas. Plaquemines is already the second-largest LNG export terminal in the United States, after Sabine Pass, operated by Cheniere Energy.

Subscribers to Industrial Info's Global Market Intelligence Oil & Gas Production Plant Database can learn more by viewing the plant profiles for Plaquemines and Sabine Pass.

More Agreements Needed Before FID on Alaska LNG

Elsewhere, Glenfarne, the developer behind the proposed Alaska LNG facility, said it needs to secure offtake agreements for another 3 million metric tons per annum (MTPA), on top of the 13 MTPA already secured, before it can make a final investment decision (FID).

"The last 3 million tons will move very quickly," Brendan Duval, the company's chief executive officer, was quoted by the Reuters news service as saying from the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo.

Japanese energy companies JERA and Tokyo Gas are among the major purchasers so far. Australian services company Worley, under a provisional arrangement, will offer engineering, procurement and construction management services for Phase I development.

Glenfarne split development into two phases earlier this year. The first phase would include a 739-mile, 42-inch pipeline that would be constructed in four sections, with potential tie-backs to existing midstream infrastructure. It will be difficult to build a pipeline, however, given the construction window in Alaska is narrowed by a warming climate as special infrastructure is needed when the ground thaws.

Phase II would add on coastal infrastructure that would be able to produce 20 MTPA for potential exports to Asia.

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

By the Numbers

• 13% increase sanctioned for Plaquemines LNG
• 10% annual increase in total LNG exports expected

Key Takeaways

• War prompts U.S. to expand LNG
• Alaska LNG needs more offtake agreements

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

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, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).