SUPERNEWS

Macro

US to Boost LNG Exports, Targets Mid-2024 for New Plant

Venture Global LNG to start Louisiana plant by mid-2024, boosting US LNG exports; Qatar expands in Europe for energy security.

By Athena Xu

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4/27, 21:43 EDT
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Key Takeaway

  • Venture Global LNG Inc. targets mid-2024 to start production at its second Louisiana LNG export facility, boosting US's lead in global LNG supply.
  • The Plaquemines facility, with a planned 20 million tons/year capacity, marks a significant step in meeting growing Asian demand and European energy diversification.
  • This development positions the US to double its LNG deliveries by decade's end, amidst ongoing construction and regulatory approvals for cooling operations.

US LNG Expansion on the Horizon

Venture Global LNG Inc. is set to begin production at its second liquefied natural gas (LNG) export facility in Louisiana by mid-2024, marking a significant step in reinforcing the US position as the leading global supplier of LNG. The company has requested approval for an LNG shipment to initiate the cooling process of its equipment at the Plaquemines LNG facility, a crucial phase preceding the commencement of LNG exports. This development is part of the broader shale revolution, which has unlocked vast natural gas reserves across the US, enabling it to surpass Qatar and Australia as the top LNG exporter. The Plaquemines facility, currently under construction, is expected to have a total capacity of 20 million tons per year, with the first phase producing 10 million tons.

Qatar's Strategic European Engagement

Parallel to the US's expansion, Qatar is making strategic moves to cement its position in the European LNG market. A significant project underway in the UK aims to expand gas storage capabilities at the Isle of Grain, located 37 miles east of London. This expansion, set to be completed by mid-2025, is crucial for Europe's energy security amidst ongoing gas price volatility. Qatar, through a 25-year contract with state-owned QatarEnergy, has reserved capacity for up to 7.2 million tons of LNG per year at the Grain terminal, starting from 2025 to 2050. This move is part of Qatar's broader strategy to control about a quarter of all LNG by the end of the decade, ensuring reliable avenues to sell its large fossil fuel volumes, especially as its trade partners shift towards decarbonization.

Enhancing Supply Flexibility and Security

The construction of the new tank at the Isle of Grain LNG terminal is a strategic enhancement of Europe's gas storage capacity, addressing the region's need for more 'flexible' LNG to meet its demand. This project will allow the terminal to store and deliver enough gas to meet up to a third of the current British demand, providing additional flexibility that can be commercially beneficial for Qatar. Furthermore, QatarEnergy's involvement in the Golden Pass LNG terminal in Texas, a joint project with Exxon Mobil Corp., highlights Qatar's global LNG ambitions. The Golden Pass terminal, expected to start output in 2025, will produce up to 18 million metric tons of LNG a year, indicating potential volumes directed towards the Grain LNG terminal.