The U.S.' liquefied natural gas (LNG) is once again gaining momentum since a second wave of projects from early 2018 is set to bring more than 10 million tonnes per annum (mtpa) to the market under sales and purchase agreements (SPAs), according to senior in Wood Mackenzie on Monday.
Kristy Kramer, director of Americas gas research, at global natural resources consultancy at Wood Mackenzie, said the increase in SPAs is 'remarkable'.
In the period since the first wave of U.S. LNG projects in late 2017, just 2 mpta had been locked in.
At the end of August this year, the U.S. Federal Energy Regulation Commission (FERC) announced regulatory timelines for 12 LNG projects.
'At the same time, strengthening fundamentals mean Wood Mackenzie believes the global LNG supply-demand gap in 2025 will increase from 45 mpta to 65 mpta,” Kramer said.
This increases the pressure on U.S. LNG projects to make commercial arrangements as they look to take FIDs in the next 12-18 months, she warned.
“Gas supply will rise in importance for the next wave of U.S. LNG. The U.S. market will increase by more than 30 billion cubic feet per day between 2012, when the first U.S. project took FID, and 2022 when those projects will be online,” she said.
By Gulsen Cagatay
Anadolu Agency
energy@aa.com.tr