US natural gas exports are well underway

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Now ready for the biggest year in 2019The year 2018 was & nbsp; a record year for the new natural gas export business in the United States. The latest data from the US Department of Energy indicate that LNG exports have reached a record of nearly 110 billion cubic feet in November 2018. & nbsp; This is a 35% jump from November 2017, and many more to come: "US liquefied natural gas beats records once again. & nbsp; This year, we will move from Malaysia to & nbsp; to become the third largest LNG exporter in the world (Australia could overtake Qatar to take first place).

Currently larger than US LNG sales, although their potential is lower, US gas to Mexico has also increased by 10 to 12% over the previous year. About half of this & nbsp; came from two regions of South Texas, Rio Grande City and Roma. At the top of the rankings for a long time, Mexico is now the second largest market behind South Korea for LNG purchases at US flagship LNG Sabine Pbad terminal in Louisiana (China ranks third). Gasoline to Mexico adds $ 6 billion to $ 8 billion to the US economy each year and is a critical selling point so our prices do not go to unsustainable levels and shale producers are no longer in the market. 'activity. & Nbsp; Total LNG exports to the United States are expected to exceed supplies in Mexico this year.

Apart from the shale revolution itself, burgeoning exports, leading to increased global competition for domestic users, may be the most important transformation in US history. natural gas market. Liquefied natural gas in the United States has already reached 33 countries as of February 2016.

With a mbadive resource base in low cost natural gasWhile domestic demand, record production and the most efficient and competitive natural gas industry in the world, the future is bright for US gas exporters. & nbsp; This is a fast-growing market in America, which is our largest market source of new demand.

The United States now accounts for 65% of Mexico's gas consumption. & Nbsp; Others will certainly come because gas demand in Mexico is booming, while domestic production is declining. In addition, despite the colossal sale of 550 trillion cubic feet of recoverable shale gas, the new President AMLO he's committed to not allowing large-scale fracturing, & nbsp; a shale extraction technique likely to & nbsp; generate significant domestic supplies over the next five years: & nbsp; "When will Mexico begin to fracture natural gas?"Admittedly, AMLO contradicted itself and returned to various energy positions.

We know that Mexico & nbsp; try & nbsp; to move away from US LNG because it's 50 to 60% more expensive than piped supplies from Texas. The more expensive energy is a particularly destructive force for a country where half of the population is poor. Additional US funding for more border pipelines should.

But, Mexico's environmental and indigenous rights groups have surprisingly steadfastly opposed the construction of a mandatory pipeline. & Nbsp; And & nbsp; The traffickers of narco & nbsp; imprisoning billions of dollars in pipelines compromises the integrity of the transmission system. & nbsp; Now the CFE state public service & nbsp;owes billions of dollars companies building the pipelines, although they are incomplete and unable to deliver gas.

With respect to US LNG, decarbonization efforts around the world will result in increased natural gas production. Demand for LNG is expected to increase by 6 to 9% over the next few years and to grow as much as large forecasting organizations model it. & Nbsp; This rise in consumption could quickly tip the global LNG market from 3 to 3 Bcf / d of surplus to an equivalent five-year deficit.

To be ready, US-based projects wishing to adopt their final investment decision-making process this year will soon be commended for addressing this global supply shortage. & Nbsp; It will take several years to set up an LNG export terminal. online.

With the leaders meeting of the two countries this week, & nbsp; the trade war between the United States and China has been a burden on our LNG industry. & Nbsp; In November, & nbsp; United States. LNG shipments to China were only 6.6 billion cubic feet, up from a peak of 24.6 billion cubic feet in October 2017. If an agreement can not be reached, the tariff could be increased on March 1 when the current truce should end. US President Trump, however, has now indicated his willingness to extend the deadline if necessary.

Unfortunately, India, the second largest market of additional demand, is not as substantial as the & nbsp; China. & Nbsp; Last year, with no purchase in August and November, & nbsp; India recorded a & nbsp;monthly average of only 6.5 billion cubic feet in September and October. Yet India, which lacks energy, remains a priority target and is putting in place the infrastructure needed to import 9 to 12 billion cubic feet of LNG over the next decade. Slow growth and nuclear restart could slow LNG in Japan and South Korea.

Although growth is not as fast as that of China and India, & nbsp; Europe will remain a priority for & nbsp; United States. natural gas shippers as well. Better late than never: "Germany should have at least 2 LNG terminals.And last month, North West Europe offered the largest net revenues to US LNG sellers, with UK netback to Sabine Pbad averaging around $ 3 per MBtu.

Russia, which already accounts for almost a quarter of all international gas trade, will still face stiff competition for the United States.Nord Stream 2& nbsp; (from Russia to Germany) & nbsp; and Turk Stream& nbsp; (Russia to Turkey) pipelines should be & nbsp; completed this year. In addition, the huge Siberian gas pipeline of 3.7 billion cubic feet per day linking Russia to China is also expected to be completed this year. & Nbsp; Russia also has a broad LNG strategy that should not be underestimated by those in the US Congress who wish to dampen the influence of Putin.

Political support is important for the prospects for gas exports to the United States. & Nbsp; Wisely, given that LNG exports are receiving bipartite support, project approvals have accelerated, even though they were not fast enough. FERC and the & nbsp; PHMSA & have better coordinated & nbsp; coordination of the LNG review process since their The memorandum of understanding was signed on August 31. & nbsp; Indeed, & nbsp; "American LNG: here is the second wave."

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Now set for the biggest year of 2019, 2018 was a record year for the new natural gas export business in the United States. The latest data from the US Department of Energy indicate that LNG exports reached a record high of nearly 110 billion cubic feet in November 2018. This is a leap by 35% compared to November 2017, and much more to come: "Liquefied natural gas from the United States is once again breaking records, and every year we will surpbad Malaysia to become the third largest LNG exporter in the world. Australia could overtake Qatar to take first place).

Currently larger than LNG sales in the United States, although they have less potential, US gas going to Mexico has also increased by 10 to 12% over the previous year. About half of this amount came from two areas of South Texas, Rio Grande City and Roma. At the top of the rankings for a long time, Mexico is now the second largest market behind South Korea for LNG purchases at US flagship LNG Sabine Pbad terminal in Louisiana (China ranks third). Gasoline in Mexico adds $ 6 billion to $ 8 billion every year to the US economy and is a critical market opportunity, so our prices do not go down to unsustainable levels and shale producers fail. Total US LNG exports are expected to exceed pipeline supplies in Mexico later this year.

Apart from the shale revolution, the surge in exports, and thus increased global competition for domestic users, may be the biggest transformation in the history of the US natural gas market. Liquefied natural gas in the United States has already reached 33 countries as of February 2016.

With a mbadive low-cost natural gas resource base, domestic demand up but not over, record production and the most efficient and competitive natural gas industry in the world, the future is bright for exporters American gas. It is a fast-growing US market that is our main source of new demands.

The United States now accounts for 65% of Mexico's gas consumption. Demand for gas in Mexico is booming as domestic production declines. In addition, despite the 550 billion cubic feet of recoverable shale gas, the new president of Mexico, AMLO, is committed to not allowing large-scale fracturing, a shale extraction technique likely to generate significant deliveries in the domestic market by about. Is Mexico starting to break natural gas? "Admittedly, AMLO contradicted itself and returned to various energy positions.

We know that Mexico is trying to get away from US LNG because it is 50% to 60% more expensive than piped supplies from Texas. The more expensive energy is a particularly destructive force for a country where half of the population is poor. Additional funding from the United States for more border pipelines is expected.

But environmental groups and indigenous peoples in Mexico have shown surprisingly strong resistance to the construction of the pipeline. And narco traffickers diverting billions of dollars of pipeline products endanger the integrity of the transportation system. Now, the state utility, CFE, owes billions of dollars to the companies that build the pipelines, although they are incomplete and unable to supply gas.

With respect to US LNG, decarbonization efforts around the world will result in increased natural gas production. Demand for LNG is expected to increase by 6 to 9% over the next few years and to grow continuously as far as large forecasting organizations model. This increase in consumption could quickly tip the global LNG market from a current surplus of 3 to 4 Bcf / d to an equivalent deficit in the next five years.

To be ready, US-based projects that are hoping to make their final investment decision-making process successful this year will have to be cleared to soon face the imminent global supply shortage. The launch of an LNG export terminal takes several years.

With the leaders meeting of the two countries this week, the trade war between China and China has been a burden on our LNG industry. In November, US LNG shipments to China were only 6.6 billion cubic feet, up from a peak of 24.6 billion cubic feet in October 2017. If an agreement can not be reached, could be increased on March 1, when the current truce should end. US President Trump, however, has now indicated his willingness to extend the deadline if necessary.

Unfortunately, India, the second largest market of additional demand, is not as substantial as China. Last year, with no purchases made in August and November, India recorded a monthly average of only 6.5 billion cubic feet in September and October. Yet India, which lacks energy, remains a priority target and is putting in place the infrastructure needed to import 9 to 12 billion cubic feet of LNG over the next decade. Slow growth and nuclear restart could slow LNG in Japan and South Korea.

Although its growth is not as fast as that of China and India, Europe will also remain a priority for US natural gas shippers. Better late than never: "Germany should have at least two LNG terminals". And last month, northwestern Europe offered the strongest net funds to US LNG sellers, with the UK net price at Sabine Pbad averaging around $ 3 per MBtu.

Russia, which already accounts for almost a quarter of all international gas trade, will, however, face stiff competition for the North Stream 2 (Russia in Germany) and Turk Stream (Russia in Turkey) pipelines. In addition, the mbadive 3.7 billion cubic feet of Siberia connecting Russia to China pipeline is also expected to be completed this year. Russia also has a big LNG strategy that should not be underestimated by those in the US Congress who want to protect Putin's influence.

Political support is important for the prospects for gas exports to the United States. Wisely, given that LNG exports receive bipartite support, project approvals have become faster, though not yet fast enough. FERC and PHMSA have been better coordinating the LNG review process since the signing of their Memorandum of Understanding on August 31. Indeed, "The American LNG: here is the second wave."