United States expected to be next exporter of natural gas in 2017, according to EIA report
The United States has exported more natural gas than it imports for three of the past four months and is expected to export more than it imports for the rest of 2017, according to the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook report.
According to the report, the nation’s status as a net exporter is expected to continue past 2018 due to growing U.S. natural gas exports to Mexico, declining imports from Canada, and increasing exports of liquified natural gas (LNG).
Currently, the United States is the world’s largest natural gas producer, increasing from 55 billion cubic feet per (Bcf) day in 2008 to 72.5 billion Bcf/d last year. Approximately 96 percent of all domestic natural gas is consumed by the United States.
With a near doubling of U.S. export pipeline capacity to Mexico, the EIA said it expected U.S. natural gas exports to increase, though they should remain well below the available pipeline capacity. Further, Mexico’s national energy ministry (SENER) reportedly expects to increase its natural gas use by approximately 50 percent between 2016 and 2020.
The supply of natural gas in Midwestern states as well as Appalachia will also likely displace some pipeline imports from Canada while increasing exports to Canada from both Michigan and New York.
According to EIA expectations, the amount of exported LNG will increase and U.S. liquefaction capacity will also continue to increase as five new projects in development come online within the next three years, which will increase the nation’s liquefaction capacity from 1.4 Bcf/d to 9.5 Bcf/day by the end of 2019.
