US natural gas production
With the rise in shale gas resources, there has been growth in US natural gas production. It not only reduced the volume of natural gas imported, but also encouraged exports to other countries.
Many LNG (liquefied natural gas) terminals in the US are engaged in the development or expansion of new LNG export facilities. The authorization, setup, and construction of LNG export and import terminals is highly regulated by the Federal Energy Regulatory Commission. The above chart shows the US LNG export numbers for the last six years.
The Sabine Pass liquefaction terminal by Cheniere Energy (LNG) in Louisiana is in the development phase. It plans to operate six liquefaction units. It has a permitted capacity of 4.16 Bcfpd (billion cubic feet per day).
Some new LNG export terminals in the pipeline, apart from Dominion Midstream Partners’ (DM) Cove Point terminal, are:
- Cameron LNG Terminal – a project by Sempra Energy (SRE) in Louisiana. It has a total capacity of 1.7 Bcfpd. It’s scheduled to begin service by 2018.
- Freeport’s LNG terminal in Texas has three trains under construction totaling 1.8 Bcfpd with commercial operations expected from 2019 onward.
- An LNG terminal by Cheniere Energy in Corpus Christi, Texas, is under construction with a total capacity of 2.14 Bcfpd. It’s scheduled to begin service in 2018.
The LNG sector faces steep competition not only from other domestic terminals, but also from other countries in the international LNG market. Australia emerged as a global player in LNG exports with a boom of several LNG terminals and its access to Asian markets.
Since the US is one of the world’s largest natural gas producers, it’s expected to be among the biggest contributors to the global LNG capacity.