Last week’s energy supply deal between the U.S. and EU means the heat is on for more LNG resources to help Europe sever its Russian gas dependence in the next five years. Meanwhile, as cargo tankers continue to be rerouted to European ports that have already put the kibosh on Russian imports, the U.S. still has a lot of work to do to keep pace with growing global demand amid the sudden restructuring of Europe’s gas supplies.
Reese Energy Consulting today is following the latest news on American LNG where the U.S. exports more volumes than any other country in the world. By the end of 2022, when more trains come online at Venture Global’s Calcasieu Pass, our LNG exports are expected to reach a whopping 13.1 BCFD. About 25% of our supplies are currently earmarked for Europe. The new supply deal will increase our exports there by another 1.5 BCFD.
But right now, we can’t produce anymore. Even after more trains fire up at Calcasieu, we’ll still be at full capacity at all seven U.S. terminals. As we’ve shared before, 13 new LNG projects await a FID—most of which have been hamstrung by the FERC permitting process and required financing to start shoveling dirt. The window of opportunity and leadership is wide open. If we can all just work together.