The US could invest around $100 billion in new LNG developments to support long-term growth, according to a new report from Wood Mackenzie on Wednesday.
The report entitled, North American LNG Benchmarking, revealed that the US last year was the third-largest exporter of LNG at 76.4 million metric tonnes per annum (mmtpa).
It was also reported that the country will surpass Qatar and Australia this year to export 89 mmtpa.
- New projects to boost LNG capacity
Wood Mackenzie predicts that based on the combination of projects already under construction and the momentum of potential projects, US LNG capacity could grow between 70 mmtpa and 190 mmtpa before the end of the decade.
The report also highlights that the US will become the largest LNG exporter in 2023 and that demand will push exports to more than double by 2030, although supply chain challenges, competition and financing hurdles remain.
To achieve this, a slew of new projects will have to be launched, which could lead to as much as $100 billion in new projects over the next five years.
Giles Farrer, head of gas and LNG asset research for Wood Mackenzie, stated that record-high prices and the need for energy security drove buyers, which included portfolio players and US producers and infrastructure companies, to seek long-term US LNG deals in 2022 and created huge contracting momentum for projects.
'Last year alone, 65 mmtpa of long-term US deals were signed, decreasing the 18.5 mmtpa we saw in 2021. This activity has pushed a host of pre-final investment decision (FID) US projects forward, and we could see a wave of FIDs this year and next,' he explained.
By Gulsen Cagatay
Anadolu Agency
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