Energy Information Administration (EIA) and Bloomberg anticipate may only be about 20 bcf/d of total LNG exports from North America by 2040.īy contrast, U.S. LNG Canada – the largest private-sector investment project in Canadian history – received backing by the Canadian federal government and tentatively locked in more than 3 bcf/d of what the U.S. Moreover, in economics-speak, this is a path-dependent game, where a credible commitment to advance a project anywhere in the world can foreclose the opportunity to move others forward in other parts of the world.Īs a case in point, consider LNG Canada, which took an affirmative final investment decision this past October.

wants to motivate a second wave of new LNG projects – and it should – and compete globally against other natural gas sources, then it needs a reasonable solution to the U.S-China trade standoff. The sky isn’t falling for the United States (not yet at least), but if the U.S.

If you were interested in stability of LNG supplies, from China’s perspective would you rather build additional Russia/Caspian pipeline capacity, contract for more LNG from neighboring Papua New Guinea or Australia, or sign up to buy more U.S. LNG projects and the billions in investment and thousands of jobs associated with those projects are likely to be hampered – that is, without support from the world’s largest growth market in China. However, if global trade fissures continue to deepen, future U.S. The United States’ trade war with China could be resolved this year, and the proverbial clouds over trade relations may clear. Importantly, LNG is an industry where security of supply and trusted trade relationships are key ingredients to motivate long-term contractual arrangements that underpin the financing and development of new projects. Projections may vary, but China is expected to be the major source of future global LNG demand growth, and it’s one of relatively few emerging economies with a clear need for natural gas as well as the ability and willingness to pay for it. The data show there would have been zero global market growth last year if not for China: was not an LNG exporter just three years ago, so this is all new value to our economy, produced by the energy revolution. LNG exports rose 63 percent year-over-year to $4.4 billion through the first 10 months of 2018. LNG exports grew by more than 50 percent in 2018 to more than 3 billion cubic feet per day (bcf/d) and now represent more than 7 percent of the global market: According to Bloomberg, global LNG exports only grew by 2.2 percent in 2017 and 1 percent in 2018. Enable electrification in emerging economies that helps raise living standards, create jobs and advance human development.Reduce global greenhouse gas emissions by displacing the burning of coal and biomass in China, India and other places and,.manufacturing revolution with advantaged feedstocks that have become plentiful as natural gas liquids (NGLs) – ethane, propane, butane and natural gasoline – are extracted from the natural gas for exportation investments in infrastructure – including pipelines, natural gas processing, LNG liquefaction, export facilities and shipping – and the high-quality jobs and wages that accompany these Generate economic growth at home by helping stimulate additional natural gas development, more than is needed to supply domestic demand.natural gas exports because growing markets for domestic natural gas can: 24.Īmericans should care about the health of these U.S. liquefied natural gas (LNG) cargoes to China, which fell by around 20 percent from 2017, as these shipments became subject to a 10 percent Chinese import tariff effective Sept. As 2018 trade figures have become clear, an emerging consequence was decreased U.S. set new natural gas and oil production and export records in the fourth quarter of 2018, even as the administration's trade war with China continued to escalate.

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