U.S Becomes World’s Top LNG Exporter In 2023 For 1st Time, Overtakes Qatar & Australia

Energy analysts claim that because of the quick expansion of LNG liquefaction plants on the U.S. Gulf Coast, the U.S. now leads the globe in exporting domestic natural gas to foreign consumers. The year 2023 witnessed a 15% year-over-year increase in U.S. exports due to activating a new plant and wrapping up repairs at a different mega-facility.

The growth rate has surpassed that of the world’s top LNG producers, Australia and Qatar, in terms of exports. The United States faces fierce competition, though, as Qatar is getting ready to expand its liquefaction plants significantly, doubling its output by the close of the decade.

Roughly eight million tonnes of U.S. natural gas left LNG terminals in December alone, heading toward purchasers in Europe and Asia, taking 390 billion cubic feet out of the domestic market. This comprised almost 12% of the gas produced in the United States that month.

According to the U.S. Energy Information Administration (abbreviated the EIA), increased LNG exports push domestic natural gas prices, and high domestic natural gas prices in 2022 were partially caused by LNG output. Per forecasts for 2050, increased LNG exports could result in a 30% increase in natural gas prices for American families compared to a low-export scenario.

Higher exports are also more likely. Besides, 17 more LNG plants are also on track to be built in the U.S. by 2028, and seven more are waiting for permit decisions from the Federal Energy Regulatory Commission (abbreviated as FERC). Based on global gas prices, this could double up the U.S. LNG exports by the early 2030s, per EIA assessments.

Reference: Reuters

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Source: Maritime Shipping News