US To Become the Leading LNG Exporter Amidst Energy Crisis

The United States is set on the path to overtaking Qatar and Australia’s place as the world’s largest exporter of liquefied natural gas (LNG) by 2022. The country is likely to maintain this position for many years to come.

In a year when China and other major economies in Europe and Asia struggled to obtain heating supplies and generate power, the United States was sitting on a pile of gas.

Global LNG demand has been hitting annual records since 2015, mainly due to the increased Chinese demand, as well as the rest of Asia’s. Much of that global appetite has been satisfied by the steady increase in US exports, which have also set new records since 2016 and are expected to continue doing so into 2022.

The US Energy Information Administration’s 2022 projection is that the country’s LNG exports will reach 11.5 billion cubic feet per day, which is equivalent to nearly 325.6 million cubic meters. That would supply nearly 22% of the expected global LNG demand, which is believed to be 53.3 billion cubic feet per day, according to Goldman Sachs analysts.

The United States is expected to remain the largest LNG-exporting country until 2025, the year when Qatar is likely to complete the expansion of its North Field project and, thus, regain its leadership as an exporter. However, in case American companies start building new export plants, the country can keep its position.

Prominent US companies such as Cheniere Energy, the country’s current leading exporter, have signed long-term agreements to sell LNG, which should provide all the funding needed to move forward on other multibillion-dollar projects.

Many of these contracts were signed with Chinese buyers. “After years of avoiding a commitment to buying LNG from the US, Chinese companies finally took action,” said Nikos Tsafos of the Center for Strategic and International Studies (CSIS).

Up until this point in 2021, the majority of US LNG exports have gone to Asia, with 13% going to South Korea, 13% going to China and 10% going to Japan, according to US data. Brazil has also been increasing its purchase of American LNG.

Source: Valor Econômico

To read the full original article visit the link: https://valor.globo.com/mundo/noticia/2021/12/23/eua-se-tornarao-maior-exportador-de-gnl-em-meio-a-crise-energetica.ghtml

Sharing is caring!