The United States Looks to Increase Its Export Capacity as Global Demand for LNG Continues to Increase
- Jul 1, 2018 6:35 pm GMT
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The shale oil boom in the US has not only made us self-sufficient in terms of domestic energy needs, but has also made us a net exporter of natural gas. Though we have been exporting LNG to various countries since 2016, we only had one export terminal which was fully operational – the Sabine Pass facility in Louisiana.
New Export Terminals under Construction
Earlier this year, another export facility – the Cove Point terminal in Maryland – became fully operational, which has allowed us to expand our export capacity greatly. This is outstanding because this will allow America to get natural gas to Europe much easier which is awesome for the Europeans and us in America.
It is not wonderful news for Russia though since Russia is basically a gas station masquerading as a country. Russia’s main revenue source is natural gas – if America can cut into that that means more money for America and less for Russia. We can hurt a key rival/enemy without firing a shot.
There are currently four other LNG export facilities under construction – Elba Island in Georgia (0.03 billion cubic feet per day), Cameron in Louisiana (0.6 billion cubic feet per day), Corpus Christi in Texas (0.6 billion cubic feet per day), and Freeport in Texas (0.7 billion cubic feet per day) – all of which are expected to come online in 2019.
US LNG Exports Set to Increase Greatly
Once these facilities become fully operational, our export capacity could increase up to 11 billion cubic feet per day. In addition to this, over a dozen export terminals are also being proposed, which when approved could add to our export capacity tremendously.
In fact, experts say that we could join Australia and Qatar to become part of the exclusive LNG Big Three club. If our production and export capacity continues to expand at the current rate, we could even become the world’s largest LNG exporter in as short a span of time as five years!
The change in administration could not have come at a better time for the energy industry, particularly for our natural gas companies, as they were reeling under the relentless onslaught of the previous administration through its green energy initiatives.
The growth of our natural gas industry was slowed down due to the unfair regulatory hurdles, the overemphasis on green energy, and a trigger-happy EPA which created roadblocks for fracking projects.
Not the case anymore which is one reason why America has plenty of energy for its electrical needs.
The new administration is correcting the wrongs of the previous one by reducing the emphasis on green energy, focusing more on natural gas, and removing the bureaucratic red tape to the extent possible. As a result, our industry is growing at a rapid pace and is on its way to become one of the largest exporters of LNG in the world.
Increase in Global LNG Demand
The demand for LNG around the world continues to increase steadily, as more and more countries are reducing their dependence on coal and moving to natural gas, which is cleaner.
In 2017, global demand for LNG increased to 40 billion cubic feet per day, which was higher than most people expected. It is set to increase steadily in the near future and it is also predicted that there could be a global LNG shortage in 2020. This should be a great year for America though since Trump should be able to win another term in office because of the fantastic economy – among many other reasons as well!
More revenue for America is always something to smile about.
Coincidentally, it is the same time around which our second wave of export terminals is expected to become operational.
If we proceed to increase our export capacity at the current rate, we could be in a position to supply LNG to a large number of countries at a time when they need it the most – making us the most powerful player in the international energy market. So, without a doubt, the future of our energy sector looks brighter than ever before!