There is possibly significant growth potential in the US LNG Pipeline imports realm due to the expected major rise in LNG Pipeline supplies in the near future and the forecast that US natural gas demand will also go up (partly because of the need of electric power generation facilities for more fuel.) At present though, LNG imports make up an estimated 14% of total natural gas imports into the US.
The companies that take part in the LNG value chain (such as production facilities, liquefaction plant owners, shipping concerns, and import terminal owners) will probably add much more to the current investments they already made into this industry.
Export-oriented countries that are attempting to monetize reserves are already pursuing liquefaction projects right now. There will probably be more global LNG source countries as well. Before 2005, there were already 12 LNG export-oriented countries but by end of 2007, the list had a total of 15 export-oriented countries. That same roster will probably have 17 export-oriented countries when end of 2009 comes around.
The natural gas Pipeline reserves of the world are believed to hover at around 6,000 trillion cubic feet (or Tcf), which would be equal to around 60 times the 2006 consumption of natural gas. Those 15 export-oriented countries control an estimated 33% of the global natural gas reserves.
Ironically, much of the natural gas Pipeline stores of the world are deemed “stranded” due to the lack of LNG and other applied technologies (including GTL or gas-to-liquids) that would help make marketing the natural gas to consumers to be economical.
New trading partners are believed to have the potential to contribute more LNG Pipeline exports into US markets. Equatorial Guinea is one such trading partner since Marathon Oil Corp. has started up its LNG plant at Bioko Island and started sending supplies to the US. BG Group for its part will use the onetrain facility to provide supplies to market, emphasizing the US as one destination market. The Norwegian Snohvit LNG project will probably provide supplies as well based on an agreement with StatoilHydro ASA. The Norwegian company has an agreement to get capacity at the Cove Point import terminal in Maryland. Norway is expected to start supplying LNG to the US in 2008.
Nigeria will probably send higher volume exports into the US that will surpass supplies brought by train 4 and train 5. Train 6 will probably be finished at the end of 2007.
Qatargas II of the Middle East should get online by the middle of 2008 – posing an annual capacity of over 15 million tons (equal to 720 Bcf), with majority of that to be sent to the Atlantic Basin but not necessarily to the US market. By the early part of 2009, Yemen should be able to provide a new supply stream with majority of LNG expected to reach the US end users.
As for Russia, its Sakhalin II project is set to be operational by 2008. Though this project will probably not be directly sent to US markets, this project should be able to supply LNG imports into Mexico via the Baja California-based Costa Azul terminal within Mexico (that is being built right now.) The Costa Azul terminal owners want the US market to be the final stop for part of its LNG throughput, with its regasified LNG to be delivered via the Mexico-US border pipeline map.
Rextag Strategies as a leading and accurate Pipeline Map & Pipeline GIS provider. Today, an accurate pipeline map and Pipeline GIS is base to survive in Oil and Gas Industry. Browse our site for more information about Pipeline map and Pipeline GIS or buy online now!
Energy Information Administration-Energy Information Administration-3/4/2008
