Analysis

American LNG Exports Given Boost by Qatar Petroleum

American Liquified Natural Gas (LNG) has recently arrived on the global market. Prior to 2016, there were no LNG export terminals anywhere within the United States. The country’s first LNG export terminal was converted from an import hub to an export hub in 2017, by Chenerie Energy. Qatar has also joined the trend toward American LNG through its recent joint venture through the Golden Pass Facility.

 

The facility, located near the Texas town of Sabine Pass, is a joint venture between Qatar Petroleum (70%), ExxonMobil (17.6%), and ConocoPhillips (12.4%). The facility, expected to be finished by 2021, will be one of the largest in the world and will have the capacity to export nearly 2 billion cubic feet of natural gas, a day.

 

In just two years, American LNG exports have quadrupled, from 0.5 billion cubic feet of gas a day produced in 2016 to an estimated 1.94 billion cubic feet a day in 2017. The US is expected to continue to ramp up production and reach an estimated production target of 3.5 trillion cubic feet a year, becoming the world’s third-largest exporter of natural gas.

 

Qatar has played a crucial part in both strengthening and developing the American LNG market. So far, Qatar Petroleum (QP) has invested over $10 billion dollars in the Golden Pass LNG plant, which is expected to generate 45,000 jobs in the United States. US producers are just arriving onto the Natural Gas market and face stiff competition. Qatar’s experience and relationships in the LNG export business will be able to shorten or even eliminate the learning curve for US companies that QP is partnered with. In doing so, US exporters are able to gain further profits in conjunction with their oil exports.

 

 

(Image Source: KallanishEnergy)

 

 

Qatar Strengthens US Shale Industry
READ THE LATEST QATAR NEWS

 

Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Share on Tumblr
Tumblr
Print this page
Print
Email this to someone
email