The US will be the world’s biggest exporter of LNG in 2022 and will remain in that leading position until 2025, according to data from the Energy Information Administration. The US will export more LNG than Qatar and Australia.
Firstly, global demand for liquified natural gas (LNG) has hit record highs each year since 2015; primarily due to surging demand in China and the rest of Asia. Much of that global appetite has been met by steadily rising US LNG exports; which have reached new records every year since 2016 and are poised to continue in 2022.
Moreover, according to the US Energy Information Administration; US LNG exports will reach 11.5 billion cubic feet per day (bcfd) in 2022. That would account for 22% of the expected world LNG demand of 53.3 bcfd next year, according to analysts at Goldman Sachs. Such a rate would outpace Australia and Qatar, the two largest exporters today.
Furthermore, the United States will remain the biggest LNG exporter by capacity until around 2025; when Qatar could regain the lead as its North Field expansion starts to enter service. However, if the US continues with its growth pace and American developers start building new LNG export plants, the United States may not give up the crown.
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The US helping people worldwide to get access to natural gas
As we reported previously, major American developers like Cheniere Energy (LNG.A), the largest US exporter, have signed numerous long-term deals to sell LNG in recent months. Venture Global is yet another developer that signed long-term LNG contracts this year.
In addition, many of those contracts came from Chinese buyers. Nikos Tsafos at the Center for Strategic and International Studies said about the matter. “After years of avoiding a commitment to buy US LNG, Chinese companies have finally made their move.”
On the other hand, so far in 2021, most American LNG exports went to Asia, with about 13% going to South Korea, 13% to China, and 10% to Japan, according to US energy data.
Finally, Charlie Riedl, executive director for the Center for Liquefied Natural Gas (CLNG), said. “The growth of LNG exports from the United States helps people all around the world to get greater access to an abundant and reasonably-priced product that helps ease the world’s current supply crunch.”
