LNG Report: North American Market Seeing Action

Published on: March 27, 2023

The growth of LNG export facilities in North America addresses energy security concerns but may not significantly impact domestic economic issues amid potential production declines and growing domestic energy needs.

A recent report by Industrial Info Resources discusses the growth of LNG export facilities in North America, which could improve energy security but may not significantly impact domestic economic concerns.

British Columbia's provincial government approved the $7.2 billion Ksi Lisims LNG facility, following the progress of Cedar LNG and Shell plc's Kitimat project. These facilities grant Canada access to international markets but face a potential decline in natural gas production by 2050.

In the United States, Wood Mackenzie predicts it will become the world's largest LNG exporter, with total exports expected to grow by nearly 20% next year. However, the U.S. Energy Information Administration expects natural gas production to remain flat in 2023 due to lower prices.

LNG exports have gained attention as they pose fewer geopolitical risks than piped natural gas. While the United States takes on a larger share of the European market, the rapid expansion of LNG exports could strain domestic energy needs, given that natural gas still accounts for nearly 40% of the United States' electricity generation.