• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 6 days America should go after China but it should be done in a wise way.
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 7 hours Even Shell Agrees with Climate Change!
  • 2 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 12 days Does Toyota Know Something That We Don’t?
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

OPEC Lifts Production in February

Tom Kool

Tom Kool

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is Oilprice.com's Head of Operations

More Info

Premium Content

North American LNG Projects Plagued By Price Volatility

  • Industrial Info Resources: volatility obfuscates investment decisions on new North American LNG projects.
  • Developers of U.S. LNG export facilities could launch $100 billion worth of new plants over the next five years.
  • Canada is finally taking steps to build LNG export projects.

New U.S. and Canadian LNG export projects show signs of accelerating but volatile natural gas prices are making bets on future supply and demand difficult, industrial market intelligence provider Industrial Info Resources (IIR) said in new research on Friday.

“But too much too fast could overwhelm the sector. Volatility in natural gas prices makes it difficult to bet on the future and exports take away from domestic needs,” IIR said in a statement.  

In Canada, the provincial government of British Columbia has allowed the US$7.2 billion floating Ksi Lisims LNG facility to enter the environmental review process. The move followed consent for Cedar LNG, another project planned for Canada’s western coast, and both come on the heels of a positive step forward for Shell’s mega project at Kitimat.

Those LNG facilities, if progressed to construction and operations, could offer Canada an export outlet to the prized North Asian markets, according to IIR.

The U.S. is also progressing with new LNG export facilities.

Developers of U.S. LNG export facilities could launch $100 billion worth of new plants over the next five years as high prices and the need for energy security create strong momentum for long-term LNG demand and contracts. 

The United States is set to overtake Qatar and Australia as the world’s top LNG exporter this year after Freeport LNG resumes operations, energy consultancy Wood Mackenzie said in a recent report.   Related: Spain Calls On Importers Not To Sign New LNG Deals With Russia

But U.S. natural gas production is expected to hover around 100 billion cubic feet per day (Bcf/d) for the foreseeable future, per IIR’s analysis.

“Natural gas remains an essential component of the domestic energy mix and production is expected to linger close to the five-year average,” it said.

According to the EIA, the U.S. benchmark spot Henry Hub prices are set to go up from the February lows due to rising demand from the Freeport LNG export facility reopening, seasonal increases in demand in the electric power sector, and relatively flat domestic gas production for the rest of 2023 as producers reduce drilling in response to lower prices. 


By Tom Kool for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News