Shale Gas Exports from the USA to Europe: Current Status and Future Prospects
By 2018, the USA has managed to establish an export of shale gas to Europe, with Poland receiving LNG from Cheniere’s Sabine Pass terminal as early as 2017. While LNG exports to Europe have been a significant development, it is important to note that the volumes of other forms of natural gas, such as LPG, have also increased in response to the evolving energy landscape. Despite these developments, the US remains a major importer of fossil fuels, with Canada continuing to be a significant supplier.
Current State of Natural Gas Imports and Exports
Currently, natural gas is a prominent export from Canada to the USA. According to market data, Canada's natural gas exports by pipeline amount to 6 billion cubic feet per day. In comparison, the total US natural gas consumption in 2016 was approximately 27.5 trillion cubic feet per year, or 74 billion cubic feet per day. Consequently, imports from Canada constitute about 8% of current US natural gas usage, as illustrated in the graph below.
The graph also shows a significant increase in natural gas exports to Mexico and the early stages of LNG exports to Europe. The market will continue to determine the optimal mix of these energy supplies.
US Natural Gas Imports and Exports Summary: 2016
For a detailed breakdown of US natural gas imports and exports in 2016, refer to the table below:
CountryLNG Exports (in MMCF) Italy3328 Portugal3700 Spain2930 Turkey8762 Total LNG Exports186841 Total Natural Gas Exports (including pipeline to Canada and Mexico)2335448LPG Exports from the USA: A Growing Industry
In the realm of liquefied petroleum gas (LPG) exports from the USA, the industry has shown remarkable growth. Since 2012, LPG exports have increased by over 400%. This significant boost in LPG exports is driven by several key factors, including the United States becoming a net exporter of LPG in 2012. The US is now the largest LPG exporter in the world, with ongoing increases in NGL (Natural Gas Liquid) processing capacity.
To facilitate this expansion, several pipeline projects are under development. For example, the Shin Oak pipeline by Enterprise, the Grand Prix pipeline by Targa, and the Sand Hills pipeline by DCP are all designed to increase capacity to hubs on the Gulf Coast. These pipeline projects complement current and planned processing plant expansions as well as the construction of several ethane crackers in Texas. The increased pipeline capacity and processing capacity will allow more products to reach the Gulf Coast for export.
Concluding Remarks
The US has made significant strides in both natural gas and LPG export markets. While the US is still a major importer of fossil fuels, the expansion into European markets through LNG has been a crucial development. Moving forward, the market will continue to determine the most effective mix of natural gas supplies. As pipeline and processing capacity continues to grow, the US is positioned to play a more significant role in the global energy market.