First certified US LNG cargo could be delivered 2Q 2022: S&P

US certified LNG

The first certified US LNG (liquified natural gas) cargo from the United States could set sail in the second quarter of 2022, according to estimations by S&P Platts and market watchers. The shipment would come from the Haynesville Shale region in Louisiana and East Texas.

Firstly, according to Project Canary CEO Chris Romer, the first US LNG cargo of certified gas could set sail in 2Q 2022; as the demand for cleaner gas will skyrocket through the following year. The executive said to S&P. “I think next year LNG buyers are going to start insisting on the methane intensity being measured at the well level, pad level, compressor station, all the way through to it being put on a ship and delivered to that foreign hub.”

Moreover, Emanuel Corral, a low-carbon gas analyst with S&P Global Platts Analytics; has also predicted the first certified US LNG cargo in 2022. “The more companies jump on this movement, the more confidence I gain that it will happen,” Corral said.

In addition, the predictions come as producers have publicly committed to having around 30% of the Haynesville Shale production certified by mid-2022. Just over half of that is on schedule for completion by the end of 2021.

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Certified US LNG appealing for importers

Furthermore, the region’s production has attracted attention as flaring is less common there than in more liquids-rich basins; that, combined with the basin’s naturally lower emissions profile, has made certification an attractive proposition for operators.

On the other hand, the Haynesville Shale is close to the bulk of existing and proposed US LNG export terminals along the Gulf Coast. This proximity gives the region further appeal for certification; especially as midstream operators begin to offer ways to move gas molecules directly to exporters.

About the matter, the CEO of DT Midstream said in September that the gathering and midstream company would build a “wellhead-to-water carbon-neutral pathway” to move Haynesville gas south to Gillis Hub. Such a project would support “international, domestic market desire for low carbon LNG exports.”

Finally, certification of gas production has been one of the industry’s measures to address importers’ interest in reducing emissions. Carbon offsets and carbon capture have been other measures for the same goal.

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