Importance of USLNG Exports

U.S. Gas Industry Increasingly Relies on USLNG Exports

John Kemp, Reuters opinion (March 29): U.S. gas producers have become increasingly reliant on USLNG exports to Europe and Asia to absorb growing output and prevent domestic prices from plunging because of oversupply. LNG exports surged to almost 67 bcm in 2020, up from less than 1 bcm in 2015, and were rapidly catching pipeline exports to Canada and Mexico. Outbound LNG shipments accounted for more than 7% of all domestic gas production last year, and by the end of the year the proportion had reached 10% for the first time.

The Biden administration may also perceive advantages from LNG export promotion, but growing gas exports will have to be reconciled with its commitment to reducing global emissions. It is likely to conclude U.S exports are a more attractive alternative to LNG exports from rival suppliers or coal combustion, at least in the short to medium term. Link to Content