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Post: The United States is on track to regain its position as the world’s largest gas exporter.

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The United States is on track to become the world’s top exporter of liquefied natural gas this year after restarting operations at a facility in Texas disrupted by a fire, overtaking Australia, which currently leads the market, according to Reuters data. .

A fire in June destroyed the Freeport natural gas facility, the second-largest export facility in the United States, and reduced US fuel exports by approximately 2 billion cubic feet per day.

The blockade caused the United States to cede its position as Australia’s biggest exporter at a time when global demand for fuel is growing.

In 2022, natural gas exports to the US as liquefied gas will increase by 8% to 10.6 billion cubic feet per day, slightly less than the 10.7 billion cubic feet per day exported by Australia.

The United States is ahead of Qatar, which ranks third with exports of 10.5 billion cubic feet a day, according to Refinitiv.

These exports played a key role in restoring European gas supplies after supplies were disrupted by the Russian invasion of Ukraine in February.

US supplies will be more important this year as supplies from Russia to Europe will be significantly reduced.

In 2021, the United States ranked third in terms of exports, behind Australia, which sold about 10.5 billion cubic feet per day, and Qatar, which sold 10.1 billion cubic feet per day.

The United States almost took the top spot in 2022, with Venture Global LNG’s Calcasio Pass facility in Louisiana coming online earlier in the year.

coronation obviously

But the loss of Freeport’s LNG reserves mid-year hurt the United States’ chances of being the top exporter in 2022.

Freeport LNG said it expects to resume operations in the second half of January, pending regulatory approval, which would shift the production balance in favor of the United States.

And with new LNG plants not coming online in Australia until around 2026 and in Qatar until around 2025, analysts say they expect production from both countries in 2023 to remain the same as in 2022.

US LNG export facilities expected to come online are the 2.4 bcfd Golden Pass facility for Qatar Energy and ExxonMobil in Texas, and Venture Global’s Blackmines facility in Louisiana, with first shipments from both planned for 2024 .

For New Fortress Energy, a facility on the Louisiana coast that was first proposed for production in 2023 fell short of its original target. Regulators have withheld the ratings twice, pending further details.

“Europe and Asia are demanding more LNG, US operators are preparing to build more infrastructure to meet that demand,” James West, senior managing director at energy research firm Evercore (ISI), told Reuters.

By 2022, nearly 69% of US LNG exports, or 7.2 billion cubic feet, will go to Europe, as companies ship from Asia to command higher prices.

In 2021, when prices in Asia were at their highest, only 35% of US LNG exports, or about 3.3 billion cubic feet per day, went to Europe.

In 2022, the average gas price was $41 per million British thermal units on the Dutch gas contract trading platform (TTF) in Europe and $34 (Japan-Korea index) in Asia, but has only reached $7. in American standard. Henry’s husband in Louisiana.

Gas recently traded in Asia at around $29 per million British thermal units, compared with $22 in Europe and just $4 in the US.

Analysts expect these higher prices to drive more US LNG exports to Asia this year.

Source: EuroNews

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