North American LNG Exports to Grow: Study

Laxman Pai
Monday, July 29, 2019

North American LNG exports will grow quickly until 2023 then plateau until a second wave of capacity comes online from 2025, McKinsey Energy Insights said in 2019 North American Gas Outlook.

Global LNG supply overcapacity puts pressure on US liquefaction capacity utilization, which has among the highest marginal costs, it said.

Balancing out global LNG overcapacity is equivalent to an average US LNG capacity utilization rate of 70% from 2019-21.
 
Construction delays primarily at Cameron and Freeport prevent new capacity from coming online until the global LNG market has recovered in ~2021.

Slowdown in North American projects is expected from 2021-24 as new international LNG supply comes online, primarily from Qatar, the report said.

US LNG exports are sensitive to global gas demand, as the marginal supplier to the Europe and Asia, it said.

Post FID plants (LNG Canada, Golden Pass and Calcasieu Pass) come online in 20251. From 2028-29, there will likely be room for 2-3 most cost advantaged LNG projects from North America to fill the global LNG supply gap.

Categories: Energy LNG North America

Related Stories

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Shell Hires Noble’s Drillship for Work in Southeast Asia

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Eco Wave Finds Partner for Wave Energy Project in India

Malaysia's Petronas Plans Job Cuts

Abu Dhabi's NMDC Group Gets $1.1B Subsea Gas Pipeline Job in Taiwan

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

ADES’ Fourth Suspended Jack-Up Rig Gets Work Offshore Thailand

ABS Approves Hanwha Ocean’s FPSO Design

Current News

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Mitigate SCC & HE to Keep Offshore Metal Structures Ship Shape

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Petrovietnam, Petronas Extend PSC for Offshore Block

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com