Demand for US LNG is likely to remain depressed in the near future
Global economic slowdown has led to reduced demand for LNG produced in the US. As a result, LNG exports from the country are likely to remain low in the near future, says GlobalData, a leading data and analytics company.
Haseeb Ahmed, Oil and Gas Analyst at GlobalData, comments: “Significantly low prices of gas along with an LNG supply glut has pushed companies to revisit their capex spends on upcoming multi-billion-dollar gas projects.
In March 2020, Royal Dutch Shell exited the proposed Lake Charles LNG export project in Louisiana. Sempra Energy is unwilling to take financial decisions pertaining to the Port Arthur LNG terminal due to current market challenges, which is likely to push the start of the project by a year to 2024.”
LNG exports from the US witnessed an overall declining trend during the period Jan – Jun 2020 in the wake of the COVID-19 pandemic. The US Energy Information Administration (EIA) estimates that about 46 cargoes were cancelled in June 2020 and about 50 cargoes were canceled the following month, hugely hitting the liquefaction capacity utilization in the US.
Ahmed concludes: “Even though the economic outlook showed glimpses of recovery, the sporadic nature of the pandemic was weighing down growth prospects of the LNG sector in the country. Moreover, EIA forecasts that utilization of LNG liquefaction facilities in the US would average around 35% in the coming months when seasonal LNG demand tends to be low.”
Between mid-2019 and mid-2020, the amount of LNG terminal capacity in construction around the world more than doubled.
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GasPro 2.0: A Webcast Symposium
Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.
The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.
The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.
Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.
October 21, 2020 08:30 AM CDT