NEW YORK- US liquefied natural gas (LNG) developers are on track to approve three export projects capable of processing 5.1 billion cubic feet per day (bcfd) of gas in the first half of the year, a record volume for new LNG projects in any year.
The US became the world’s largest LNG producer by installed capacity in 2022 driven by the boom in LNG plant construction and a decade of surging shale gas discoveries. US LNG exports are poised to reach 12.1 bcfd this year and 12.7 bcfd next year.
The latest approvals are chipping away at a backlog of projects pursuing financial support and customers willing to sign long-term contracts. Analysts say demand for the fuel will keep the flow of approvals coming this year.
“We expect global LNG demand to grow from 399 million tons in 2022 to 627 million tons by 2035, more than a 50 percent increase,” said Michael Stoppard, global gas strategy lead at data provider S&P Global Commodity Insights.
US LNG developers this year have already approved the construction of two projects: the second 1.2-bcfd phase of Venture Global LNG’s Plaquemines in Louisiana and Sempra Energy’s 1.8-bcfd Port Arthur in Texas.
NextDecade Corp said it expects to greenlight the first 2.1-bcfd phase of its Rio Grande LNG project in Brownsville, Texas by month’s end. First production could take place in 2027, it said.
The final investment decisions (FID) allow the companies to start major construction after signing construction and financing agreements. New plants generally take from three to five years to produce their first LNG.
