U.S. LNG Exports Bloom under EIA Forecast

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. could become a net energy exporter in the next decade as petroleum liquid imports fall and natural gas exports rise, according to the U.S. Energy Information Administration (EIA). Such a scenario would bode well for liquefied natural gas (LNG) export projects in the U.S.

In its Annual Energy Outlook 2017 report, the EIA looks at several scenarios going out through 2050. "Exports are highest, and grow throughout the projection period, in the High Oil and Gas Resource and Technology case, as favorable geology and technological developments combine to produce oil and gas at lower prices," according to an EIA press statement. "The High Oil Price case provides favorable economic conditions for producers while restraining domestic consumption, enabling the most rapid transition to net exporter status."

The report indicates that total energy consumption in the U.S. is likely to increase only 5% between 2016 and 2040, while total energy production will increase by more than 20% from 2016 through 2040, led by increases in crude oil and natural gas production.

Natural gas production is likely to increase "quite a bit, with relatively low and stable prices, supporting increased consumption in the electric power and industrial sectors," said EIA Administrator Adam Sieminski in a presentation on Thursday. Under the EIA's Reference Case scenario, natural gas exports via pipeline and LNG shipments could grow from roughly 4 billion cubic feet per day in 2016 to about 20 billion cubic feet by 2040.

Industrial Info is tracking more than $126 billion in active U.S. LNG export terminal-related projects. In December, the Federal Energy Regulatory Commission (FERC) approved Golden Pass Products LLC's planned liquefied natural gas (LNG) export terminal and associated pipeline near Sabine Pass, Texas. Owned by affiliates of Qatar Petroleum International Limited (Doha, Qatar) and Exxon Mobil Corporation (NYSE: XOM), Houston, Texas-headquartered Golden Pass Products plans to build a three-train LNG facility at its existing import terminal, with a combined capacity of 15.6 million tons per year, and a project price tag of more than $1 billion. For related information, see December 23, 2016, article - FERC Green-Lights Golden Pass LNG Export Terminal in Texas.

The U.S. Department of Energy (DOE) recently granted Liquefied Natural Gas Limited's (Perth, Australia) Magnolia Project in Lake Charles, Louisiana, authorization to export liquefied natural gas (LNG) to countries that do not share a free-trade agreement (FTA) with the U.S. Industrial Info is tracking $4.25 billion in active projects related to the Magnolia LNG project, as well as $6.05 billion in other projects involving Liquefied Natural Gas Limited. For related information, see December 13, 2016, article - Magnolia LNG Project Moves Forward with Key Approval.

And in October, Cheniere Energy (NYSE:LNG) (Houston, Texas) received FERC approval to start liquefaction and export activities at the Sabine Pass facility's Train 2 in Cameron, Louisiana. Industrial Info is tracking $10 billion in projects at the Sabine Pass facility, and more than $21 billion in other active projects involving Cheniere. For related information, see October 14, 2016, article - Cheniere Gets OK to Double LNG Export Capacity at Sabine Pass Facility.

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