An error occured. Details Hide
You have unsaved pages. Restore Cancel

Liquefied natural gas (LNG) represents a significant component of the energy consumption of many countries and accounts for about one third of total internationally traded gas. Total global LNG production (liquefaction) nameplate capacity grew to 320 million tonnes per annum (MTPA), or 435 billion cubic meters, by the end of 2015 from 119 MTPA in 2000.

The US shale production boom and recovery of global oil prices from 2010 to 2012 after the global financial crisis created an attractive environment for new LNG projects. An enormous 798 MTPA of new production capacity has been proposed globally in new liquefaction facilities (mostly in the US, Canada and Australia). Of that amount, 117 MTPA of capacity are currently under active construction. If implemented, these projects could not only make the US and Canada the largest LNG capacity holders and exporters globally, but also could create thousands of American jobs, lower the US trade deficit, and strengthen the geopolitical position of the US. In the most optimistic scenario, the US could become the world's largest LNG exporter by 2020, with about 200 MTPA of LNG export capacity installed. However, the recent collapse in global oil prices has made crude oil competitive again to natural gas in terms of energy equivalence and put many of proposed LNG projects at risk.

As the IEA says: "Due to its capital-intensive nature, LNG industry faces an uphill battle. Those projects currently under construction today are set to come on stream broadly as planned, as large upfront capital costs have already been incurred. Beyond that, however, new LNG plants will struggle to get off the ground. Today LNG prices simply do not cover the capital costs of new plants. Several projects have already been scrapped or postponed, and the number of casualties will rise if prices do not recover. Final investment decisions (FID) taken in the next 24 months will determine the amount of incremental LNG supplies available in the early part of the next decade. If current low prices persist, LNG markets could start to tighten up substantially by 2020."

Realistic estimates based on projects that are currently under construction bring down the US LNG export capacity prospects to about 43 MTPA by the end of 2020. That number assumes the shutdown of the 46-year old Kenai LNG plant in Alaska and the successful commissioning of 10 LNG Trains: Sabine Pass LNG (4 trains) and Cameron LNG (3 trains) in Louisiana, 2 trains in Freeport LNG Texas, and the Cove Point expansion project at Chesapeake Bay, Maryland (see the interactive map).

Sources: BP Statistical Review of World Energy - 2015 Main IndicatorsBP Statistical Review of World Energy - 2015 Bilateral trade; World Bank Commodity Price Data (Pink Sheet)World liquefied natural gas (LNG) landed prices (U. S. FERC)U.S. Natural Gas, November 2015UK Natural Gas Futures PricesIGU World LNG Report, 2015. Global LNG Liquefaction Plants And Receiving Terminals

Production and Trade      Liquefaction & Regasification Capacity      Natural Gas and LNG Prices

Download our latest ENERGY cheat sheet Download

Download our latest ENERGY cheat sheet

It's a one pager PDF full of live links to energy-related data, statistics, and dashboards from leading industry sources. It will be a useful resource for any analyst, business executive, or researcher with an interest in the oil & gas industry, energy companies, biofuels and much more.

Related Data Insights

Natural Gas Prices Forecast: Long Term 2017 to 2030 | Data and Charts

Autumn and winter are traditionally characterized by the growth in energy consumption and, thus, in prices for energy products. Still, natural gas prices in the US, Europe, and Japan showed different dynamics in November. Thus, the spot price of natural gas at Henry Hub, US, fell by 15.2% in November compared to the previous month. This decline - which was the sharpest monthly drop since December of 2014 - interrupted a period of steady growth lasting from April. On the contrary, in Europe, average import border price of natural gas surged by 14.4% - the most dramatic monthly increase over the last 17 years. What for the import price of...

Crude Oil Price Forecast: 2017, 2018 and Long Term to 2030

Brent crude oil price will average at $52.4 per barrel in 2017 and increase to $54.1 per barrel in 2018 according to the most recent forecast from the U.S. Energy Information Administration's Short-Term Energy Outlook released monthly. EIA revised up its forecast for 2018 by 2.5 dollars per barrel from the previous release. However, the real price of a barrel of Brent oil - i.e. price adjusted for inflation - will slightly decrease to $50 in 2018 as predicted by OECD in its June's Economic Outlook. After a modest growth in 2018 though, the nominal price of Brent crude will increase to $53.5 a barrel by 2020, as per IMF's Primary Commodity...

BP: World Reserves of Fossil Fuels

According to the latest BP Statistical Review of World Energy, total global reserves, by fossil fuel, are now:  Coal - 1,139 billion tonnes Natural Gas - 187 trillion cubic meters Crude Oil - 1,707 billion barrels While these volumes may seem large at a glance, at today's level of extraction and production rates, BP's estimated proved reserves*, by fossil fuel, would be exhausted as follows: Coal - year 2169 Natural Gas - year 2068 Crude Oil - year 2066 BP dutifully acknowledges the abundance of factors that could easily alter these projections, but these factors do not alter the global policy imperitive to support sustainable fossil...

Coal Prices Forecast: Long Term 2017 to 2030 | Data and Charts

2016 was an exceptional year for coal prices. The period of decline which began in 2011, was interrupted by the rapid growth. Coal prices grew by 7-10 percent in November continuing a 24-29 percent growth in October. Since January, when the price of coal reached a 10-year low, coal prices have rebounded by about 100 percent. This situation is attributable to several factors. First, it is the consequence of an implemented policy in China which aimed at reducing harmful emissions. China is the largest coal consumer and coal producer at the same time. The reduction in own-grown production led to the increase in coal imports. Second, not only...