The US is projected to become the third-largest LNG exporter in the world, surpassing Malaysia and remaining behind only Australia and Qatar.
JUL 4, 2018 (BE2C2): Pakistan bought some Liquefied Natural Gas(LNG) from the US also besides Qatar amid reports that US LNG exports quadrupled in 2017.
Pakistan’s new ambassador to the United States Ali Siddiqui in an interview with Bloomberg TV and Radio this week said Pakistan has opened two LNG terminals and some US gas did land in Pakistan’s energy system.
He also mentioned that ExxonMobil — an American multinational oil and gas, company, and Italy’s ENI were undertaking offshore drilling in the country.
While highlighting the immense potential for business and trade ties between Pakistan and US, Mr. Siddiqui expressed hope that some large American companies will enter Pakistan mainly in the oil and gas sector which will result in growing trade and commercial ties between the two nations.
Mr. Siddiqui highlighted that the two countries have been long-time allies and are working together in many areas, including a shared interest of restoring peace in Afghanistan.
U.S. exports of LNG reached 1.94 billion cubic feet per day (Bcf/d) in 2017, up from 0.5 Bcf/d in 2016. As LNG exports increased, shipments went to 25 countries.
More than half (53%) of U.S. LNG exports in 2017 were shipped to three countries: Mexico, South Korea, and China — China was biggest importer (15%).
The widening difference between the Henry Hub natural gas price—to which U.S. LNG contract prices are indexed—and crude oil—to which LNG prices are benchmarked in Asia—helped to drive increases in LNG imports from the United States. And President Trump’s new US energy policy is also creating the space.
Last year in June, the Trump administration announced new energy policy that seeks not only American energy independence, but American energy dominance also — “by exporting American energy all over the world, all around the globe.”
Two LNG projects—Sabine Pass in Louisiana and Cove Point in Maryland—have come online since 2016, increasing U.S. LNG export capacity to 3.6 Bcf/d.
Four more projects are scheduled to come online in the next two years: Elba Island LNG in Georgia and Cameron LNG in Louisiana in 2018, then Freeport LNG and Corpus Christi LNG in Texas in 2019. Once completed, U.S. LNG export capacity is expected to reach 9.6 Bcf/d by the end of 2019.
By 2020, the US is projected to become the third-largest LNG exporter in the world, surpassing Malaysia and remaining behind only Australia and Qatar.