North American LNG exports double as Qatar wins long-term contracts

North American LNG export capacity is slated to double over the next three years to 24.4 billion cubic feet per day (bcf/d) from 2023 levels, the EIA said Tuesday.

The forecast assumes that all LNG projects currently under construction begin operating as planned in Mexico, the United States and Canada.

The EIA expects most of the export expansion to be in the United States at 9.7 Bcf/d, with Mexico and Canada accounting for the remaining 3.3 Bcf/d. It builds on the 10 new projects currently under construction in North America, 5 of which are in the United States, including Plaquemines Phases I and II, Corpus Christi Phase III, Golden Pass, Rio Grande Phase I and Port Arthur Phase I .

As North America increases its LNG export capacity, global LNG demand is expected to grow by more than 50% by 2024, according to Shell.

Qatar, Australia and the United States remain world leaders in the LNG industry. But it is Qatar that will account for 40 percent of all new LNG supplies globally by 2029, its government said, as major projects such as the North Field expansion. This would increase its export capacity by 85%.

And he already has plenty of upcoming deals on the books. QatarEnergy has signed a number of long-term LNG deals, the most recent of which was with Kuwait in a 15-year deal. In pursuit of LNG dominance, Qatar has also chartered dozens of new vessels to carry these LNG exports.

In July, a federal judge struck down President Biden’s January pause on reviewing and approving LNG export applications, arguing that the pause was “completely without reason or logic.”

US LNG exports have been touted as a fossil fuel that will trigger a reduction in CO2 emissions from the US energy sector, emitting 145 million metric tons less by 2030, according to researchers in a 2024 paper titled The Market and Climate Implications of US LNG Exports.

By Julianne Geiger for Oilprice.com

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