The US will continue its lead in global liquefied natural gas (LNG) liquefaction capacity additions, contributing to 46% of the total LNG liquefaction capacity additions between 2023 and 2027.
That’s according to leading data and analytics company GlobalData, which also reveals that the US is expected to add a new build LNG liquefaction capacity of 158.4 million tonnes per annum by 2027.
Another 58.2 million tonnes per annum of capacity is also expected to be added to the country via expansion projects.
Himani Pant Pandey, Oil & Gas Analyst at GlobalData, says abundant shale gas and strong demand for LNG in Asia and Europe have been primarily encouraging investments in the LNG liquefaction projects in the US.
He added, “The European plans to stop natural gas imports from Russia due to the Russian-Ukraine war have given further impetus to the US liquefaction projects.”
GlobalData identified CP2 as one of the key upcoming players in LNG liquefaction projects in the US, with Venture Global Partners, holding the entire equity, while Venture Global LNG is the proposed operator.
The project is expected to start operations in 2026 with a capacity of 10 million tonnes per annum, which is then likely to double to 20 million tonnes per annum by 2027.
Just last month (July 2023), Venture Global LNG received a positive final impact statement (FEID) from the Federal Energy Regulatory Commission (FERC) for its CP2 LNG project. The environmental nod puts Venture Global LNG on track for a commission vote and the start of construction later this year.
Companies such as ExxonMobil, Chevron, and JERA have already signed agreements for the purchase of LNG from the project. More than half of the contracted capacity has been committed to German and Japanese customers.
In March 2023, Venture Global LNG also announced the final investment decision for phase two of the Plaquemines LNG export plant and secured $7.8bn in financing. The second phase of the project is likely to increase the liquefaction capacity of the Plaquemines project to 19.8 million tonnes per annum by 2026.
A statement released by the White House in April (2023) said that the US more than doubled its target to ensure delivery of an additional 15 billion cubic meters of LNG to the EU in 2022.
US exports to the EU were 56 billion cubic meters, up from 22 billion cubic meters in 2021. The EU was the largest destination for US LNG exports, accounting for more than 52% of supplies. At the end of 2022, Russian gas accounted for only 16% of the EU’s gas imports, down from 37% in March 2022.