U.S. Exports LNG At A Record Pace
The U.S. is exporting liquefied natural gas at a record pace these days, as gas prices and geopolitical tensions in Europe rise amid the energy crisis and the Russia-Ukraine standoff.
LNG tankers were loading or being docked at each of the seven LNG export facilities in the United States on Saturday, leading to a record 13.3 billion cubic feet of natural gas flows to U.S. LNG export terminals, Bloomberg .
This is the first time that all seven LNG export terminals have seen tankers loading or docked for loading gas at the same time, according to Bloomberg.
In addition, more than two-thirds of all LNG cargoes traveling out of the United States are headed to Europe, Bloomberg’s estimates show.
The record U.S. LNG exports are incentivized by high natural gas prices in Europe and the growing tensions between Russia and Ukraine, and the West and Russia over Ukraine.
The energy crisis in Europe with historically low inventories, lower-than-typical Gazprom supply, and the geopolitical tensions have made U.S. LNG profitable in Europe, where natural gas prices are now around six times higher than the prices.
U.S. LNG exports and are expected to continue to surge as more export capacity comes online. Thanks to a growing number of U.S. LNG export projects coming into service, by the end of 2022, U.S. nominal capacity to 11.4 billion cubic feet per day (Bcf/d) and peak capacity to 13.9 Bcf/d across 7 LNG export facilities and 44 liquefaction trains, the Energy Information Administration (EIA) in December. That will be more than the respective capacities of Qatar and Australia, the other two major LNG exporters in the world.
While the U.S. is setting LNG export records, a group of Democratic Senators is urging the Energy Department U.S. natural gas exports, the record volume of which leave Americans with higher energy bills this winter.
By Tsvetana Paraskova for Oilprice.com
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