In the United States, LNG terminal projects abound

2024-01-18 01:08:13

In 2024, the United States’ liquefied natural gas (LNG) export capacity will increase again. A wave of infrastructure projects should begin to materialize at the end of the year.

At least three infrastructure projects to liquefy natural gas for export are expected to begin operating by the end of the year. In total, according to S&P Global Commodity Insights, the ramp-up could allow the United States to liquefy an additional 8.4 million tons of gas each year. This represents 10% of current capacities and they are expected to increase further in 2025 and the years that follow. By 2035, total production could even rise to 230 million tonnes per year, according to Thierry Bros, energy expert and professor at Sciences Po, i.e. 2.6 times more than current capacity.

A raise ” quite exceptional » abilities that will “ contribute to the globalization of the gas market while it had remained on a relatively regional competition model », Explains Anna Creti, professor at Paris-Dauphine and director of the Climate Economics chair.

This wave of projects comes after an already impressive rise in power. “ Until 2016, the United States did not produce liquefied natural gas. In 2023, the country will become the world’s leading exporter, ahead of Australia and Qatar. », specifies Thierry Bros.

Unconventional hydrocarbons

An ascent linked to the increase in gas extraction. For a long time, oil and LNG exports were not permitted in the United States. But, with the rise of hydraulic fracturing to extract shale oil and gas,the stocks were sufficiently rigged to lead the Obama administration to authorize them.

Furthermore, due to the war in Ukraine, the Europeans, then major customers of Russia, had to diversify their supplies to the point “ to replace a dependence on Russian gas with a dependence on American LNG » worries Olivier Appert, advisor to the Ifri Energy Center. However, the installations mainly planned in Texas and Louisiana are exposed “ at risk of hurricanes “and if Donald Trump returns to the White House next year, he might want” reduce the exports to keep American gas » for domestic use, he further analyzes.

Uncertainties

Will all projects come to fruition? Nothing is certain. In the Gulf of Mexico, four terminals are under construction, another is growing, according to data from S&P Global Commodity Insights. Eighteen others are at less advanced stages and are therefore more uncertain. Before launching the construction of such infrastructure, financing must be secured and authorizations obtained. However, environmental defenders are putting pressure on this election period. And, selon Politicothe Biden administration is reassessing the climate criteria considered for approving new LNG export infrastructure.

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