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Released August 17, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info was pleased to present a webinar this week on the global liquefied natural gas (LNG) sector. At a similar webinar held about a year ago, Industrial Info experts reported approximately $1.86 trillion in active oil and gas spending across the world. Today, that figure has grown to $2.11 trillion, with natural gas-related projects accounting for about $1.53 trillion of this. Much of this activity is coming in the form of LNG-related projects, both for liquefaction and regasification, as LNG's importance in the global energy sector continues to grow.
Although much of the world is undergoing an energy transition that includes a shift away from fossil fuels, the demand for natural gas remains strong. Natural gas represents a fuel for baseload power generation that has less carbon emissions than coal when combusted, making it an ideal "bridge fuel" as markets transition to renewable energy. This lower-carbon-intensity fuel can be used to shore up power availability for markets that rely on solar and wind energy, due to the intermittent output of those sources. Natural gas also is being used in projects related to the energy transition in the form of blue hydrogen, which produces hydrogen while employing carbon capture and storage.
For many countries, access to natural gas provides energy security. For those countries without a steady domestic supply of natural gas, it often is delivered in the form of LNG. According to Industrial Info's Global Market Intelligence (GMI) Database, there are $159 billion worth of LNG liquefaction and regasification projects under construction throughout the world. This number seems set to grow, with LNG projects in the planning and engineering stages representing $633 billion in planned activity, $322 billion of which is planned to kick off in 2023-24, although not all of this will occur as planned.
Industrial Info is tracking $57 billion of LNG liquefaction capacity set to be brought online in 2023-24, coming from 36 trains and accounting for 64 million tonnes per annum (MTPA). In the U.S., projects set to be brought online in this period include:
Demand is now becoming less intense, and the scene is shifting into more of a buyer's market. This has led to many long-term sales and purchase agreements being signed, paving the way for positive financial investment decisions (FIDs) on additional liquefaction projects.
In the U.S., 96 MTPA of LNG liquefaction capacity has been approved for construction, representing $75 billion worth of spending, while 98 MTPA representing $82 billion worth of spending are awaiting FIDs.
Additional LNG liquefaction and regasification capacity will be needed in the future as natural gas-fired power generation is installed globally. Industrial Info is tracking 145 gigawatts (GW) of natural gas-fired power under construction, with a further 67 GW approved to kick off. While not all of this gas-fired power capacity will be built out, there is 528 GW worth in the planning stage throughout the world.
In conclusion, project activity on both the liquefaction and regasification sides of the LNG sector remains strong. Despite the energy transition, global LNG demand is expected to increase over the coming years, paving the way for both suppliers and consumers to carry out new projects.
If you missed this webinar or would like to listen to it again, it will soon be available in Industrial Info's On-Demand Webinar Library.
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).
Although much of the world is undergoing an energy transition that includes a shift away from fossil fuels, the demand for natural gas remains strong. Natural gas represents a fuel for baseload power generation that has less carbon emissions than coal when combusted, making it an ideal "bridge fuel" as markets transition to renewable energy. This lower-carbon-intensity fuel can be used to shore up power availability for markets that rely on solar and wind energy, due to the intermittent output of those sources. Natural gas also is being used in projects related to the energy transition in the form of blue hydrogen, which produces hydrogen while employing carbon capture and storage.
For many countries, access to natural gas provides energy security. For those countries without a steady domestic supply of natural gas, it often is delivered in the form of LNG. According to Industrial Info's Global Market Intelligence (GMI) Database, there are $159 billion worth of LNG liquefaction and regasification projects under construction throughout the world. This number seems set to grow, with LNG projects in the planning and engineering stages representing $633 billion in planned activity, $322 billion of which is planned to kick off in 2023-24, although not all of this will occur as planned.
Industrial Info is tracking $57 billion of LNG liquefaction capacity set to be brought online in 2023-24, coming from 36 trains and accounting for 64 million tonnes per annum (MTPA). In the U.S., projects set to be brought online in this period include:
- The remaining six production modules, each with approximately 1.25 million metric tons per year of capacity, at Venture Global LNG's (Arlington, Virginia) Calcasieu Pass facility in Louisiana. Subscribers to Industrial Info's Production Project Database can click here for the project report.
- Two trains of Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and QatarEnergy's (Doha, Qatar) Golden Pass facility in Texas, representing 12 million tons per year of liquefaction capacity. Click here for related reports.
- A portion of Venture Global's Plaquemines facility in Louisiana, representing 13.3 MTPA. Click here for the project report.
Demand is now becoming less intense, and the scene is shifting into more of a buyer's market. This has led to many long-term sales and purchase agreements being signed, paving the way for positive financial investment decisions (FIDs) on additional liquefaction projects.
In the U.S., 96 MTPA of LNG liquefaction capacity has been approved for construction, representing $75 billion worth of spending, while 98 MTPA representing $82 billion worth of spending are awaiting FIDs.
Additional LNG liquefaction and regasification capacity will be needed in the future as natural gas-fired power generation is installed globally. Industrial Info is tracking 145 gigawatts (GW) of natural gas-fired power under construction, with a further 67 GW approved to kick off. While not all of this gas-fired power capacity will be built out, there is 528 GW worth in the planning stage throughout the world.
In conclusion, project activity on both the liquefaction and regasification sides of the LNG sector remains strong. Despite the energy transition, global LNG demand is expected to increase over the coming years, paving the way for both suppliers and consumers to carry out new projects.
If you missed this webinar or would like to listen to it again, it will soon be available in Industrial Info's On-Demand Webinar Library.
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).
