Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.
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Liquefied Natural Gas is natural gas chilled to about -260 degrees Fahrenheit, until it becomes liquefied. When in a liquid state, natural gas takes up only 1/600th of the volume of natural gas, making it easier to move by ship, rail car or truck. LNG is typically shipped on special super-cooled tankers from export terminals to import terminals where it is reheated and returned to a gaseous state.
The greatest demand for LNG has been in East Asia and the Pacific. In 2021 South Korea and China were the largest importers of U.S. LNG, together importing about 25 percent of all U.S. LNG. Japan, Brazil, and Spain round out the top five countries importing LNG from the United States. But the Russian invasion of Ukraine in 2022 ultimately halted shipments of Russian natural gas to Europe, creating an urgent need in those countries for other sources of natural gas.
There are currently 20 LNG facilities operating in the United States, and another five are likely to begin operation by 2025.
Qatar is currently the largest exporter of LNG, followed by Australia. The United States has risen to the third largest exporter. Malaysia, Russia and Indonesia also export LNG. The International Energy Association forecasts that the U.S. will be the top exporter of LNG in the world by 2023.