U.S. LNG Activity in High Gear

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The U.S. liquefied natural gas (LNG) sector kicked into overdrive with the start of site work at the second phase of the Calcasieu Pass terminal and investor interest in a similar project in Alaska.

Venture Global LNG (Arlington, Virginia) operates the Calcasieu Pass export terminal in Louisiana for LNG. Data from IIR Energy show the facility operating at around 90% of its peak design capacity of 1.76 billion cubic feet per day (Bcf/d) this week.

The U.S. Federal Energy Regulatory Commission (FERC) signed off last month on plans for the second phase of the terminal, dubbed CP2.

"With all federal approvals now in hand we are excited to announce that we have launched on-site work for this project, which is expected to deliver reliable low-cost LNG to the world starting in 2027," Mike Sabel, the chief executive officer of Venture Global, said in a statement Monday.

Venture Global expects CP2 will have a nameplate capacity of at least 2.65 Bcf/d, which would make it the largest LNG facility in the nation once completed. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

The initial Calcasieu Pass terminal was operating in the commissioning phase over the last three years until mid-April. Venture Global said commercial operations started several years after it made its final investment decision, "despite substantial impacts including two hurricanes, the COVID-19 pandemic, and major unforeseen manufacturing issues."

Former President Joe Biden enacted a pause on new LNG terminals during his tenure while the administration monitored potential methane emissions up and down the supply chain. Natural gas is made primarily of methane, which is a potent energy carrier as well as a harmful greenhouse gas.

President Donald Trump in one of his first acts of office on returning to the White House overturned that order by way of an executive order. His office has since sanctioned several new LNG export facilities and revitalized a project in Alaska.

In 2015, the Department of Energy gave conditional consent for the Alaska LNG project to ship to countries that don't have a free-trade deal with the United States. It's moved in fits and starts ever since.

On Tuesday, Glenfarne Alaska, a subsidiary of majority owner Glenfarne Group (New York, New York), said more than 50 companies from the United States to Japan and the European Union have expressed interest in the project.

"These potential partners have formally expressed interest for over $115 billion of contract value for various partnerships with the project, including equipment and material supply, services, investment, and customer agreements," the company said.

Glenfarne, an industrial manager of energy and infrastructure assets, said Alaska LNG will consist of a roughly 800-mile natural gas pipeline running from the North Slope to Nikiski on Alaska's Kenai Peninsula. Construction is complicated by a warming climate that leaves less time for work in north Alaskan acreage. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.

If built, it would have a peak liquefaction capacity of about 3.3 Bcf/d. The investor interest followed a visit to Alaska by U.S. Interior Secretary Doug Bergum to discuss potential drilling on the National Petroleum Reserve-Alaska, a northern reserve with some acreage under federal protection.

The United States became the world leader in LNG exports in 2022. Exports this year are expected to average 15 Bcf/d.

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).