U.S. LNG Drawing Foreign Interest

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

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Summary

Supply-side arrangements were made with European and Asian firms this week for U.S.-sourced LNG. The federal government expects LNG exports to double by 2031.

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Korean, French Companies Moving In

Korean and French energy companies tied the knot with U.S.-based project developers after the federal government said liquefied natural gas (LNG) exports could double by the start of the next decade.

Venture Global said it signed a sales and purchase agreement to supply South Korea-based Hanwha Aerospace to deliver 1.5 million metric tons per annum (MTPA) from its U.S.-sourced assets for 20 years, starting in 2030.

"We are proud to support growing global energy needs with low-cost, secure American LNG while strengthening the strategic energy partnership between the United States and South Korea to support long-term industrial and economic growth," Venture Global Chief Executive Officer Mike Sabel said Thursday.

Over a five-month period to November, South Korea accounted for about 5% of total U.S. LNG deliveries, U.S. federal data show.

Venture Global is behind both the Calcasieu Pass and Plaquemines facilities in Louisiana for LNG exports. Plaquemines helped vault LNG exports to new highs last year.

With a design capacity of 3.8 billion cubic feet per day (Bcf/d) in feed gas volumes, Plaquemines is already the second-largest LNG export terminal in the United States, after Cheniere Energy's terminal in Sabine Pass, Louisiana.

On Friday, IIR Energy calculated total feed gas volumes at 19.06 billion cubic feet, with Sabine Pass and Plaquemines combining for nearly half of that. Venture Global has filed an application with the Federal Energy Regulatory Commission (FERC) to increase the export capacity at Plaquemines.

Venture Global's Calcasieu Pass facility can handle around 1.76 Bcf/d in feed gas and has design plans for expansions.

The federal government, meanwhile, said it expected LNG levels to double by the start of the next decade.

TotalEnergies Eyes Alaska LNG

Elsewhere, Glenfarne Group, the majority owner and developer of the Alaska LNG project, said Thursday that TotalEnergies signed a non-binding letter of intent to take 2 MTPA from the facility over an unspecified period.

"We look forward to offtaking LNG from Glenfarne's Alaska LNG project," said Chairman and Chief Executive Officer Patrick Pouyanne. "The Alaska LNG project is indeed very well geographically positioned to better serve our Asian customers."

If built, Alaska LNG would have a peak liquefaction capacity of about 3.3 Bcf/d, according to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database, which includes 17 projects affiliated with Alaska LNG worth a total investment value of $30.52 billion. GMI subscribers can learn more by viewing the related project reports.

Developers said an 807-mile, 42-inch diameter pipeline is the "backbone" of the facility, which would handle the feed gas volumes slated for the project. The pipeline is the first phase of development, preceding the installation of separate liquefaction units, or trains.

Glenfarne has a strategic partnership with South Korean steel producer POSCO for pipeline materials as the U.S. doesn't manufacture much of the tubular products necessary for midstream infrastructure.

By the Numbers

• 1.5 MTPA of U.S. LNG for Korea
• 807-mile pipeline necessary for Alaska LNG
• 2 MTPA for TotalEnergies

Key Takeaways

• Foreign interest high in U.S.-sourced LNG.
• U.S. LNG sector on pace for expansion.

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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).