The United States is on the path to become a net exporter of gas in 2018, according to the U.S Energy Department, and will be driven largely by the growth of liquified natural gas exports.
Last year the U.S started exporting LNG courtesy of Cheniere Energy, a Houston-based company. Since then the country is increasingly piping more natural gas to Mexico, in the midst of simultaneously importing less gas via pipeline from Canada. The U.S was remained an overall net importer last year.
The United States is expected to become a net exporter of total energy products just after the year 2020, said the Energy Department. Just a decade ago this proposition was virtually unheard of.
Louisianan’s Sabine Pass near the Texas border came online a year ago, it is Cheniere’s first LNG export facility. Houston-based Freeport LNG export plans to start shipping LNG next year. By the year 2021 three other LNG export projects will be completed or under construction, including Cheniere’s other facility near Corpus Christi.
Due to U.S projects and several new LNG exports from Australia, the world is projected to remain oversupplied with LNG beyond 2020, according to a new Moody’s Investors Service report. Two of the largest LNG customers, Japan and South Korea, are expected to have a decrease in demand or remain flat.
Emerging markets such as China and India will require more LNG in the future. Worldwide demand won’t match production until after 2020, Moody’s predicts. Total new LNG global supplies will surge 44 percent from 2015 to 2020.
The U.S will continue to export more natural gas via pipeline to Mexico to feed power plans for electricity generation. Since 2009 the U.S natural gas exports to Mexico have doubled and will continue to grow through 2020. Several pipeline projects are currently under construction.
Article written by HEI contributor Lydia Ezeakor.