By August 14, 2015 Read More →

LNG exports from North America set to take off by 2019

Planned global LNG projects will cost $700 billion – half will be spent in North America

Global Liquefied Natural Gas (LNG) capacity will more than double from 341 million tonnes per annum (mtpa) in 2015 to 811 mtpa by 2019 based on proposed projects, according to research and consulting firm GlobalData.

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Artist’s conception of Petronas LNG plant slated for British Columbia.

The company’s latest report shows that the scale of the North American project pipeline is unparalleled, totaling 32 individual liquefaction plants with over 287 mtpa of capacity through the end of the decade.

Matthew Jurecky, GlobalData’s head of oil and gas research and consulting, says the massive infrastructure build-out in the US is driven by unconventional gas in North America.

“Years of lobbying for regulatory approval and building out liquefaction capacity has paid off, and the global market will now have to make room for significant increasing volumes of North American gas,” said Jurecky.

Dramatic liquefaction capacity growth is also anticipated in Africa, Europe and Asia.

“Shale operators in North America have eyed international markets since 2009, when BG Group entered into a joint venture with Exco Resources in the Haynesville Shale,” said Jurecky.

“Shortly after, in 2010, the first application for an LNG export facility in the US was made by Cheniere, before BG announced a long-term LNG sale and purchase agreement with Cheniere in 2011. With Shell acquiring BG in early 2015, the global LNG leader is now also lined up behind the emerging US shale gas export market.”

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Matthew Jurecky, GlobalData’s head of oil and gas research and consulting.

Jurecky says that the capital expenditure required to execute the planned global projects is estimated at approximately $700 billion, almost half of which is allocated to projects in North America.

Global LNG regasification capacity is expected to grow by around 50 per cent, from 41 trillion cubic feet (tcf) in 2015 to 60 tcf by 2019.

“The massive growth in liquefaction is commensurate with the proposed growth in regasification capacity. Continued demand growth in Asia and an alternative to pipeline natural gas in Europe underlies the $34 billion in capital expenditure behind new LNG regasification projects,” said Jurecky

“China and India will lead regasification additions, with a combined $20.6 billion proposed to increase regasification capacity by 7 tcf in the two countries by 2019. In Europe, Canatxx LNG Limited is planning a massive LNG import terminal in the UK with a total capacity of over 1 tcf.”

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