Natural Gas Exports are increasing

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Natural Gas Exports are increasing

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From the EIA's Short Term Energy Outlook

Natural gas pipeline exports to Mexico have risen this year, and EIA expects that growth to continue as
Mexico undergoes energy market reform. A relatively cheap natural gas export price, rising demand
from Mexico, and increased pipeline takeaway capacity in both in the United States and Mexico have led
to higher exports. Gross pipeline exports are expected to increase by 0.9 Bcf/d in 2017 and by 0.5 Bcf/d
in 2018 to an average of 7.3 Bcf/d.
EIA projects LNG gross exports will average 1.9 Bcf/d in 2017, up from 0.5 Bcf/d in 2016. By the end of
2017, Trains 1 through 4 at Cheniere’s Sabine Pass facility in Louisiana are expected to be fully
operational, and Cove Point LNG in Maryland is expected to come online. EIA projects gross LNG exports
to average 2.8 Bcf/d in 2018, as Sabine Pass and Cove Point ramp up capacity and two new LNG facilities
come online. Cameron LNG Train 1 is scheduled to come online in July, followed by Train 2 in November,
and Freeport LNG is scheduled to come online in November. Both facilities are along the U.S. Gulf Coast.
Cameron LNG Trains 1 and 2 will add 1.1 Bcf/d of new liquefaction capacity, and Freeport Train 1 will
add 0.7 Bcf/d of new capacity. The new Cameron and Freeport liquefaction facilities will require a few
months to ramp up and are projected to operate below nameplate capacity in 2018.
Total U.S. natural gas imports averaged 8.2 Bcf/d in 2016, and they are expected to average 8.3 Bcf/d in
2017 and 8.8 Bcf/d in 2018.
EIA projects that the United States will become a net exporter of natural gas on average in 2017, with
net exports expected to average 0.4 Bcf/d. As LNG exports increase, 2018 net exports are forecast to be
1.3 Bcf/d.
Dan Steffens
Energy Prospectus Group
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