American LNG projects on move

The recently-expanded Panama Canal may carry up to 500 percent more liquefied natural gas (LNG) in 2020 than it did in 2017 (6M tons) while production of LNG in America, and Asia’s demand for it, goes up, Jorge Quijano, head of the Panama Canal Authority, told Reuters. LNG volumes traversing the canal could hit 30M by the end of 2020, he said. Demand has significantly risen over three years. The increase to its supply, especially from onshore shale fields in the U.S. and reserves in Australia, has made it more competitive. America’s only LNG export facility is located at Sabine Pass, La., which exports via the Panama Canal mostly to North Asia and Latin America’s Pacific coast. However, there are at least a dozen LNG projects currently under construction or that have been approved by Federal Energy Regulatory Commission – mostly along the Louisiana and Texas Gulf Coast. With the LNG projects under construction, total U.S. capacity for LNG may reach nearly 70M tons. One reason: Countries have been switching to LNG – away from coal - more quickly than expected. American LNG exports through the canal are set to rise to as much as 11M tons through 2018, and about 20M through 2019, he said. (Source: Marine Link 04/20/18)