Released May 25, 2022 | SUGAR LAND
en
Researched by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--More natural gas volumes from shale plays will be coming to the global energy market, now that federal regulators approved new projects to feed export terminals on the U.S. Gulf Coast.
U.S. regulators during the first quarter approved new projects meant to bring shale natural gas to the Gulf Coast, in an effort to increase U.S. natural gas exports via pipelines or through liquefied natural gas (LNG).
U.S. natural gas imports peaked in 2007 as the shale boom took hold. Some 15 years later, the U.S. is among the world leaders--if not at the helm already--in terms of natural gas exports.
Federal data show total U.S. natural gas exports reached 6.6 trillion cubic feet last year, a 186% improvement over 2016 levels. For LNG, the export of 3.5 trillion cubic feet marked a staggering 1,800% increase over 2016 levels.
For piped gas, flows tend to heavily favor Mexico, with Canada getting only about 14% of total U.S. natural gas exports last year. Mexico, by contrast, secured about 30% of total exports last year.
For LNG, it was China, Japan and South Korea that took in the bulk of LNG volumes by far last year. That has changed somewhat since the start of the war in Ukraine in early February. The invader, Russia, is a major fuels supplier in its own right, but sanctions and general disdain have forced many importers to search for alternatives.
Two projects approved in the first quarter by the U.S. Federal Energy Regulatory Commission (FERC) only will add to LNG export potential. The Evangeline Pass Expansion Project will bring an estimated 1.1 billion cubic feet of natural gas per day (Bcf/d), and the Alberta Xpress Project will bring another 0.15 Bcf/d to export terminals on the Gulf Coast. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed Evangeline Pass project reports and here for a list of Alberta Xpress project reports.
U.S. Senator Joe Manchin, a Democrat representing the coal-rich state of West Virginia, said it's time to capitalize on those trends, given Russia's "weaponization" of its natural resources. To that point, the Kremlin has called on its customers to settle accounts in rubles to avoid sanctions, or face disruptions in gas services. Poland already has been cut off for not playing ball with Russia.
"Given the current global situation, it is essential for the United States to step up to the plate as the superpower of the world," Manchin said recently.
Politics, however, do not drive export destinations in the same way as contracts, markets or private-sector transactions. Most LNG contracts are long-term commitments. Venture Global LNG (Arlington, Virginia), for example, has a 20-year sales agreement with Polish energy giant PGNiG (Warsaw, Poland) for roughly 25 deliveries of LNG per year. That's good for Europe, but provides little wiggle room should demand centers shift to Asia. For more information, see May 18, 2022, article - Foreign LNG Moving into Russia's Backyard.
And that's what they may in fact be doing. The European Union has looked to replenish storage levels to provide a buffer against the loss of Russian products since the start of the war. Italian energy giant Eni SpA (Rome, Italy), meanwhile, bowed to Russian pressure in a way by agreeing to settle accounts in rubles, but would use supplementary accounts to convert from euros to avoid running afoul of Western-backed sanctions.
And once China eases back on social restrictions meant to control the pandemic, pent-up demand could easily shift global trade patterns toward Asia.
Meanwhile, the U.S. Energy Information Administration (EIA), part of the Energy Department, expects market prices to cool off from current highs and subsequently influence production. While the U.S. is dominant in both production and exports of natural gas, the EIA said more gas could wind up in storage rather than on the market next year, as both LNG export and demand growth slow.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
U.S. regulators during the first quarter approved new projects meant to bring shale natural gas to the Gulf Coast, in an effort to increase U.S. natural gas exports via pipelines or through liquefied natural gas (LNG).
U.S. natural gas imports peaked in 2007 as the shale boom took hold. Some 15 years later, the U.S. is among the world leaders--if not at the helm already--in terms of natural gas exports.
Federal data show total U.S. natural gas exports reached 6.6 trillion cubic feet last year, a 186% improvement over 2016 levels. For LNG, the export of 3.5 trillion cubic feet marked a staggering 1,800% increase over 2016 levels.
For piped gas, flows tend to heavily favor Mexico, with Canada getting only about 14% of total U.S. natural gas exports last year. Mexico, by contrast, secured about 30% of total exports last year.
For LNG, it was China, Japan and South Korea that took in the bulk of LNG volumes by far last year. That has changed somewhat since the start of the war in Ukraine in early February. The invader, Russia, is a major fuels supplier in its own right, but sanctions and general disdain have forced many importers to search for alternatives.
Two projects approved in the first quarter by the U.S. Federal Energy Regulatory Commission (FERC) only will add to LNG export potential. The Evangeline Pass Expansion Project will bring an estimated 1.1 billion cubic feet of natural gas per day (Bcf/d), and the Alberta Xpress Project will bring another 0.15 Bcf/d to export terminals on the Gulf Coast. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed Evangeline Pass project reports and here for a list of Alberta Xpress project reports.
U.S. Senator Joe Manchin, a Democrat representing the coal-rich state of West Virginia, said it's time to capitalize on those trends, given Russia's "weaponization" of its natural resources. To that point, the Kremlin has called on its customers to settle accounts in rubles to avoid sanctions, or face disruptions in gas services. Poland already has been cut off for not playing ball with Russia.
"Given the current global situation, it is essential for the United States to step up to the plate as the superpower of the world," Manchin said recently.
Politics, however, do not drive export destinations in the same way as contracts, markets or private-sector transactions. Most LNG contracts are long-term commitments. Venture Global LNG (Arlington, Virginia), for example, has a 20-year sales agreement with Polish energy giant PGNiG (Warsaw, Poland) for roughly 25 deliveries of LNG per year. That's good for Europe, but provides little wiggle room should demand centers shift to Asia. For more information, see May 18, 2022, article - Foreign LNG Moving into Russia's Backyard.
And that's what they may in fact be doing. The European Union has looked to replenish storage levels to provide a buffer against the loss of Russian products since the start of the war. Italian energy giant Eni SpA (Rome, Italy), meanwhile, bowed to Russian pressure in a way by agreeing to settle accounts in rubles, but would use supplementary accounts to convert from euros to avoid running afoul of Western-backed sanctions.
And once China eases back on social restrictions meant to control the pandemic, pent-up demand could easily shift global trade patterns toward Asia.
Meanwhile, the U.S. Energy Information Administration (EIA), part of the Energy Department, expects market prices to cool off from current highs and subsequently influence production. While the U.S. is dominant in both production and exports of natural gas, the EIA said more gas could wind up in storage rather than on the market next year, as both LNG export and demand growth slow.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
