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“The invasion of Ukraine is to remove one of the three major gas producers globally for future planning,” said Charif Souki, chairman of Tellurian, a gas company that is building an export terminal in Louisiana. . “In the future, no one will trust Russia. Now the United States has the opportunity to become the powerhouse of natural gas by far.”
European countries have expressed their intention to phase out their dependence on Russian gas, which is imported more than 150 billion cubic meters annually, in part by importing 50 billion cubic meters of LNG, which is about 50 percent more than what they currently import.
This will not be easy, because the global LNG market is only 523 billion cubic meters per year, of which about 20 percent currently goes to Europe. New LNG export terminals are coming into service in the United States and Qatar, but demand is growing even faster, especially in Asian countries that are trying to alleviate air pollution from coal burning.
This leaves the US despite the fact that several gas fields have insufficient pipeline capacity and attracted a few major drillers due to the fact that prices were so low until recently.
Since the Russian invasion, the Biden administration has pledged to increase LNG exports to the European Union by 15 billion cubic meters, or roughly 40 percent. That’s only one-tenth of what Russia ships to Europe, but American energy experts say American companies could produce and ship much more gas with more pipelines and export terminals.
Export operations are being expanded in the United States and there are three new terminals expected to be completed by 2026. 10 more permits, long-term buyers and investors await. EQT, a leading gas producer, has called for the country to quadruple its LNG capacity by 2030, a proposal that has received broad industry support.
“We have resources in the ground,” said David Braziel, CEO of RBN Energy, an analytics firm. “And if you had a sign from management that they wanted to develop natural gas sources, we could develop them.”
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