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United States is now world’s leading exporter of liquefied natural gas.

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United states is now world's leading exporter of liquified natural gas

 

As Europe’s energy crisis and China’s shortages drive up demand for American supplies, the United States has become the world’s biggest exporter of liquefied natural gas(LNG).

 

United States is now world’s leading exporter of liquefied natural gas after surpassing oil giant country Qatar.

 

Liquified natural gas (LNG) exports from the United States exceeded 7 million tonnes (7.7 million tonnes) in December, replacing rival producers Qatar and Australia for the first time, according to ICIS LNG Edge ship tracking data.

 

The United States did not ship the first LNG cargo from 48 states until 2016, making it the world’s largest exporter in just six years as the shale gas revolution boosted domestic production and made the country a powerful force in the world Energy market.

 

By 2022, the United States will be the world’s largest exporter, according to ICIS and the Energy Information Administration’s forecasts.

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Demand is projected to continue high in Europe, where there are concerns about Russia’s natural gas supply as tensions rise along its border with Ukraine.
Gas prices in Europe hit fresh highs in late December as investor confidence in Russian deliveries eroded and debate erupted over the Nord Stream 2 pipeline, which could transport gas directly from Russia to Germany.

 

The European Union imports about 40% of its natural gas from Russia, with much of it passing through Ukraine.
According to Reuters, wholesale prices rose again on Wednesday as the flow of gas in a pipeline from Russia to Europe was reversed for the 16th day in a row.

 

As a result, United States LNG producers have increased supplies to Europe, where prices are presently higher than in east Asia. Prices in both regions are significantly higher than those in the United States, implying that US LNG exports will increase in 2022.

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“Global spot gas prices have fallen from record highs seen in mid-December, but they remain extremely high in historical terms,” said Alex Froley, an analyst at ICIS, who added that in recent months, he had seen a “significant increase” in buyers signing long-term contracts to import gas from new US projects.

 

For years, the European Union has attempted to reduce its reliance on Russian natural gas. However, a number of EU countries, particularly those in close proximity to Russia, remain almost entirely reliant on Moscow for gas.

 

China has been dealing with an energy shortage for months, which was exacerbated by its attempt earlier this year to reduce the amount of electricity generated by coal-fired power plants.

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According to the EIA, US export capacity should continue to grow in the coming years, with a peak capacity of 11.6 billion cubic feet per day expected in November 2021. As new export facilities are finished, that number should rise to 13.9 billion cubic feet per day by the end of 2022.

 

According to ICIS, competing producers are also constructing new infrastructure, with Qatar proposing to increase its LNG capacity to 126 million tonnes (139 million tons) per year. Later this decade, Qatar could retake the status of the top exporter from the United States.

 

 

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