LIQUIFIED NATURAL GAS A SOURCE OF NORTH AMERICAN DOMINANCE FOR COMING YEARS

LIQUIFIED NATURAL GAS A SOURCE OF NORTH AMERICAN DOMINANCE FOR COMING YEARS

Five years ago, the United States and Canada were not relevant powers in the world market for liquefied natural gas (LNG) production and exportation.  When advanced drilling technologies allowed to access to huge gas sources that had been previously unavailable because they were located in shale, the global power in liquefied natural gas production and export shifted radically.  Production facilities are now being planned throughout the United States and Canada to meet global demand for natural gas in the coming years.

Locally, Texas and Louisiana stand ready to capitalize on the recent glut of gas production.  Liquefaction plants along the Gulf Coast of these states already exist, and plants originally built to receive natural gas tanker shipments are being refitted to produce LNG.  Additionally, several LNG projects are planned along the Texas and Louisiana coasts and awaiting Department of Energy approval to begin construction.  One of the largest is the South Texas LNG Export Project.  Located in Ingleside near Corpus Christi, this facility hopes to by functional by 2018 and capable of exporting 8 million metric tons of LNG each year.

The development of LNG facilities is only a portion of the coming benefit of these recent discoveries in shale.  Over more than twenty years, a complex global transport network was built to reduce the cost of international oil transport.  That same level of infrastructure development will be needed to produce distribution economies for LNG.  The U.S. and Canada currently have facilities planned to produce and liquefy the largest amount of LNG in the world.

Countries like Japan, the largest importer of LNG, which gets its product from more than fifteen countries, and China, the fastest growing consumer of fossil fuels, are sure to provide immense demand on the global supply of LNG in the coming decades. 

For managers of gas drilling firms, LNG facilities, commercial construction companies, ship builders and shipping companies the opportunities in the coming years to prosper from exporting LNG are enormous.  Forward looking firms will need to prepare for increased governmental regulation with the current administration, but proper planning will ensure they are players in a lucrative LNG economy for many years.

Simpson, Scott. "Ramped-up Global LNG Market Confronts Possible Local Producers: Waning B.C. liquefied natural gas royalties would get boost from export boom." Vancouver Sun 01 Dec. 2012, weekend n. pag. Web. 1 Dec. 2012. <http://www.vancouversun.com/business/Ramped global market confronts possible local producers/7638824/story.html>.

Dlouhy, Jennifer. "LNG export plant sought in Corpus Christi area." Houston Chronicle 30 Nov. 2012, D3. Print.

"LNG: A Liquid Market." Economist. 14 2012: n. page. Web. 1 Dec. 2012. <http://www.economist.com/node/21558456>.