BAKU, Azerbaijan, Nov.20
By Leman Zeynalova – Trend:
The US has signed the highest volume of global long-term liquefied natural gas (LNG) export contracts in 2019, accounting for around a 67 percent share, Trend reports citing GlobalData, a leading data and analytics company.
Mozambique signed the second highest long-term LNG contract volumes in 2019 with 9.7mtpa. Mozambique LNG 1 signed all the contracts for export of LNG with different purchaser companies.
Canada and Papua New Guinea account for the remaining long-term LNG contract volumes signed for 2019. Both countries have signed contracts for export of 0.8mtpa and 0.5mtpa of LNG, respectively.
The company’s report, ‘Global Long-Term LNG Contracts Review, 2019 – Golden Pass Signs High Volume Contract with Ocean LNG’, reveals that the US has signed five long-term contracts in 2019 for the export of 22.3 million tonnes per annum (mtpa) of LNG. Of these, the contract signed between Golden Pass Products and Ocean LNG Limited had the highest export volumes with 15.6mtpa. LNG will be supplied from the Golden Pass II LNG liquefaction terminal in Texas for 20 years from 2024 to 2044.
The United States is making strides toward becoming one of the world’s top LNG suppliers, starting with exporting its first cargo from the US lower-48 in February 2016. As of July 2018, the US lower-48 has exported about 450 LNG cargoes to 28 countries. In March 2018, Cove Point LNG, in Maryland, became the second US lower-48 liquefaction project to commence exports, following Sabine Pass LNG, in Louisiana, where four trains are currently online. Kenai LNG in Alaska, the sole existing US LNG export facility prior to Sabine Pass and Cove Point, was likely placed into long-term preservation mode in fall 2017. In addition to Cove Point, Sabine Pass, and under-construction projects, more than 300 MMtpa of additional capacity has been proposed, much of which is aiming to be part of a second wave of US LNG starting in the 2020s.
Currently, the United States exports LNG primarily to Mexico, South Korea, China and Japan. However, as oversupply conditions are expected to grow over the next few years, exports to Europe will increase in importance due to its role as the residual LNG demand market.
The US is now the world’s third largest LNG exporter with 14 projects awaiting final investment decision this year and next.
The Federal Energy Regulatory Commission (FERC), which oversees the regulatory process for projects, is responsible for authorising all LNG projects sitting and construction, reports Inframation.
The FERC has already approved seven of the 14 projects and five others have received their final environmental impact statement and are awaiting approval.
These 12 projects, along with two in the draft environmental impact statement stage, have anticipated final investment decisions targeted from the second half of 2019 to the end of 2020, according to public statements.
Proposed project capital expenditure of the 14 planned LNG projects in the second wave range from $1.3 billion to $43.4 billion.
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