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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.
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