Electric power generation could be the main end-use for emerging overseas economies as US LNG exports continue to rise, several speakers suggested as the US Trade & Development Agency (USTDA) formally launched its LNG export initiative on Nov. 20.
"South Asia will be one of the world's fastest-growing regions in the next 20 years. This means huge energy demand in all sectors," said Arunish Chawla, economic minister at the Embassy of India in Washington, DC.
"Natural gas has huge potential going forward as our countries address climate change. The US has expressed concerns about its competitive advantage. This will help both sides," Chawla said.
India began importing US crude oil in 2016 and could start buying US LNG as it develops transportation and distribution systems to help meet demand, Chawla said. "We now have a fairly open and harmonized gas export system which starts with public sector companies and competitive pricing," he said.
Indonesia is encouraging foreign investments to help its gas infrastructure grow, said Bhima Dwipayudhanto, economic affairs counselor at that country's embassy.
"It's true that Indonesia is one of the world's largest LNG exporters," Dwipayudhanto said. "But we need to accommodate our expanding economy and its demand for gas. Most of our gas resources are offshore, which creates problems for our own companies, but which US firms can routinely handle."
Countries in southeastern Europe need technology to build more combined-cycle power plants as they increase access and infrastructure, said Valentin-Gabriel Budau, first secretary at Romania's embassy.
"Countries also need to form business-friendly regimes. Many of our governments know what needs to be done but need help from the US government and companies to help us increase our infrastructure and access to the best technology," Budau said.
Midstream growth matters
Lisa Coppe, USTDA's sub-Saharan country manager, said governments there are looking to the US because it has revolutionized global gas markets. Senegal, which relies heavily on hydropower, would like to have gas instead of fuel oil as its power generation backup, Coppe said. "It will be as important to focus on midstream infrastructure as to bring the gas in," she said.
At least 40% of US LNG exports already go to Latin America, and USTDA sees its recent initiative as a great opportunity to work with public and private partners there, said Keith Eischeid, the agency's country manager for that region.
"Expansion of the Panama Canal has helped increased US exports not just to Southeast Asia, but also to Chile and Argentina on South America's West Coast," he said. "Caribbean as well as Latin American countries want to adapt their regulatory frameworks to reflect current realities."
