GlobalData: US needs to ‘fast-track’ LNG exports to compete in global market

The US’s lack of approved export terminals has prevented energy companies from competing in the growing global LNG market, despite the fact that the country is now the world’s largest natural gas producer, said an analyst with research and consulting firm GlobalData.

Global LNG capacity will increase at an average of 10%/year from 2013 to 2017, projected Carmine Rositano, GlobalData managing analyst, downstream oil and gas. Much of that change will be facilitated in Australia and Qatar, which will respectively hold 20% and 16% of global LNG capacity.

Australia will see the Gladstone, Gorgon, Wheatstone, and Queensland terminals come online, increasing the country’s LNG capacity by 10 bcfd over 2013 levels.

GlobalData forecasts that US liquefaction, meanwhile, will have just a 5% share of the global LNG capacity in 2017.

“Asia will remain the key market for LNG,” Rositano said, adding, “But other areas, such as Europe, will increase their LNG imports as they seek to reduce their dependence on gas supplies from Russia.”

Delays in the US caused by necessary local, state, environmental, and federal approvals, as well as the limitation that exports from US facilities can only be sold to countries with free-trade agreements (FTA), will hinder the country’s ability to compete globally, GlobalData said.

“To date, over 30 applications have been filed with the [US Department of Energy] to sell LNG. However, only seven terminals have been approved to export LNG to non-FTA countries and only one facility, the Sabine Pass LNG terminal (OGJ Online, Sept. 23, 2013), has received all necessary approvals,” Rositano stated.

“Being able to sell LNG to non-FTA countries, such as China, Japan, Taiwan, and India, is critical to success since these are key markets in the growing LNG trade. Without this approval, commercial risks would be increased and projects would be deemed commercially unviable,” Rositano warned.

Related Articles

Uneven effects seen from new Appalachian pipelines

09/15/2014 Producers in the Appalachian basin will benefit unevenly from markets opening for natural gas from the Marcellus and Utica shales, according to a C...

AAPG ICE: Turkey sees early shale oil development

09/15/2014 Turkey is slightly larger than the state of Texas geographically, yet the country has only seen 4,400 wells drilled since 1940. While Texas’ oil hi...

Giesler joins Miller as chief executive

09/15/2014 Carl F. Giesler Jr. has joined Miller Energy Resources Inc., Knoxville, Tenn., as chief executive officer, replacing Scott M. Boruff, who is now ex...

Miller seeks Buccaneer’s Alaskan assets

09/15/2014 Miller Energy Resources Inc., Knoxville, Tenn., has signed a nonbinding letter of intent to buy Alaskan operating assets of Buccaneer Energy for $4...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected