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US LNG exports to continue rising well into 2022

Oil&Gas Materials 10 November 2021 11:19 (UTC +04:00)

BAKU, Azerbaijan, Nov.10

By Leman Zeynalova - Trend:

The US liquified natural gas (LNG) exports will continue rising well into 2022, Trend reports with reference to the Energy Information Administration (EIA).

“We estimate that US LNG exports averaged 9.8 billion cubic feet per day (Bcf/d) in October 2021, up 0.3 Bcf/d from September, supported by large prices differences between Henry Hub prices in the United States and spot prices in Europe and Asia. LNG exports resumed from Cove Point LNG in late October after that facility’s annual maintenance was completed. In our forecast LNG exports average 9.8 Bcf/d for all of 2021, up 50 percent from 2020. We expect that LNG exports will increase this winter, averaging 11.0 Bcf/d from November through March. We expect high levels of LNG exports to continue into 2022, averaging 11.5 Bcf/d for the year, up 17 percent from 2021,” reads the EIA report.

The forecast reflects the EIA assumption that global natural gas demand remains high and several new natural liquefaction trains—the sixth train at Sabine Pass LNG and the first trains at the new LNG export facility, Calcasieu Pass LNG—enter service.

“We estimate dry natural gas production averaged 94.9 Bcf/d in the United States in October (up from 94.5 Bcf/d in September) and 91.9 Bcf/d in in the first half of 2021. Production in the forecast rises to an average of 95.2 Bcf/d during the rest of this winter (November–March) and averages 96.7 Bcf/d during 2022, driven by natural gas and crude oil prices, which we expect to remain at levels that will support enough drilling to sustain production growth,” reads the EIA report.

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