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U.S. LNG Exports Are About to Reshape the Global Market

Nov 8, 2018 | 20:49 GMT
Storage tanks for liquefied natural gas sit in a large oil-refinery plant
Storage tanks for liquefied natural gas sit in a large oil-refinery plant
(COR LAFFRA/Shutterstock)

The U.S. shale revolution has had a major impact at home, but its echoes have reverberated less elsewhere around the world, at least where natural gas is concerned. That, however, is about to change. By the end of 2018, the United States will launch nine liquefied natural gas export projects that will have a collective liquefaction capacity of 36.7 million tonnes per annum (mtpa). The expansion will boost the country's capacity to roughly 63 mtpa -- a big step up from the mere 1.5 mtpa that existed before 2016. It all adds up to a big year in 2019. And growth in U.S. LNG exports will continue beyond that because more processing and liquefaction facilities are expected to come online the following year. Producers are also considering additional final investment decisions to construct new facilities beyond that. The consequences of rising U.S. -- as well as Australian -- LNG exports...

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