White Papers US Gas and LNG Markets - Page 5

US Gas and LNG Markets - Continuing Challenges are Forecast such US import facilities that were designed to accept LNG from overseas shippers have been idled and several have been “turned-around” as LNG liquification and export terminals. In total, more than a dozen new US LNG export facilities have been proposed, with 8 either complete or under construction, enough current capacity to supply more than 25% of the total global demand for LNG. With the recent commissioning of Freeport LNG’s Train 1 in August of this year, six LNG liquification/export facilities are currently operating in the US, with two others under construction. These include: • Sabine Pass (Louisiana) - began operation in early 2016 and currently has 5 trains running with a total baseload capacity of 2.95 BCF/day. The facility is also planning an additional 6th train, though a final investment decision has not been made. • Cove Point (Maryland) - began operations in early 2018 and has a capacity of 0.69 BCF/day. • Elba Island (Georgia) - launched commercial operations in October with a single relatively small train running producing .20 BCFD of LNG. Nine additional trains of similar size are in various stages of commissioning and/or under construction and will be phased into production over the next several months to a year. When complete, the entire facility will produce about 1.5 BCFD of LNG. • Corpus Christi (Texas) - currently has two trains in production, producing about 1.2 BFCD of LNG. A third train is under construction, bringing the facilities capacity to 1.8 BCFD by mid-year 2021. • Cameron LNG (Louisiana) - train 1 began production in July 2019, and two additional trains are under construction. Once in full production around mid- A ComTechAdvisory Whitepaper year 2020, the facility will produce about 1.8 BCFD of LNG. • Freeport LNG (Texas) - train 1 began operation in August 2019 and two additional trains are under construction. With a total capacity of 2.0 BCFD, the plant will reach full production around mid-year 2020. A fourth train has been approved and is awaiting FID. • Golden Pass (Texas) - a buildout/turnaround of an existing LNG import facility along the Sabine River in Texas. With 3 trains under construction, the facility will have a total capacity of 2.0 BCFD when fully operational in 2025 • Calcasieu Pass (Louisiana) - recently reached a positive final investment decision and is slated to begin producing LNG sometime in 2023. With 10 trains, the plant is expected to produce 1.3 BCFD of LNG. In addition, there are six other facilities currently permitted and planned for the Gulf Coast region, though some of these may not ultimately move forward if they’re unable to secure long-term purchase commitments in an increasingly competitive LNG market. Though a couple are nearing final investment decisions, most are battling for market share with new plants proposed or under construction in Qatar, Russia and other countries positioned along the Asia Pac Rim that are better positioned geographically to serve the fast-growing markets in the region. These alternative suppliers have led the EIA to project that US LNG may no longer be price competitive after 2030, as US natural gas prices are expected to increase on rising domestic demand (primarily for industrial use and power generation) and slowing production growth. © Commodity Technology Advisory LLC, 2019, All Rights Reserved.