LNG Exports will add to ngas demand

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Global LNG trading is expected to grow significantly in the next 15 years, and much of this growth will be fueled by exports from the U.S. The EIA reports that 65 applications have been filed to export LNG from the U.S. to other nations, with applications totaling nearly 55 Bcf/d. For reference, U.S. LNG exports from 1985 to 2011 were relatively steady and averaged about 164 MMcf/d.

The first LNG facility in this boom is Cheniere’s (ticker: LNG) Sabine Pass, which came online last year. Originally planned before the U.S. shale boom, Sabine Pass was designed as an LNG import station. After gas production from tight formations like the Marcellus and Barnett secured U.S. gas supply for the future, Cheniere redesigned Sabine Pass to be an LNG export facility. With about 1.18 Bcf/d of capacity currently online, Sabine Pass has a total planned capacity of 4.16 Bcf/d. (Exports from Sabine Pass should increase to ~2.0 Bcf per day during the 2nd half of 2017.)

Another large project in progress is Tellurian’s (ticker: TELL) Driftwood LNG. This facility has a planned capacity of 4.1 Bcf/d and is located in Louisiana. Driftwood is currently awaiting regulatory approval, and expects to begin construction in 2018.

Another major proposed LNG facility is Sempra Energy’s (ticker: SRE) Cameron LNG terminal. Cameron LNG is planned for the Calcasieu Channel in Louisiana, the same channel where Driftwood LNG will be built. 2.12 Bcf/d of capacity is currently under construction at this facility, with an additional 1.41 Bcf/d awaiting approval. The three trains currently under construction are expected to come online in 2018, with the expansion coming online in 2019.

Venture Global LNG has two projects in progress, the Calcasieu Pass and Plaquemines terminals. Located in Louisiana, these facilities have a combined 4 Bcf/d of liquefaction capacity planned. The Calcasieu Pass facility is expected to begin construction in mid-2017, while Plaquemines will start construction about one year later.

Additional planned LNG facilities include:
Dominion Energy’s Cove Point LNG facility in Cove Point, Maryland, is scheduled to bring one train totaling 0.82 Bcf/d online near the end of 2017.
Corpus Christi LNG, another Cheniere project, is under construction in Corpus Christi, Texas. The terminal is scheduled to begin service in 2018, with total permitted capacity at 2.96 Bcf/d
Freeport LNG’s terminal planned for Freeport, Texas, has three trains under construction totaling 1.8 Bcf/d. The first is scheduled to begin service in 2018, and the second and third in 2020.

The EIA’s full list of export applications can be found here: https://energy.gov/sites/prod/files/201 ... ations.pdf