According to the U.S. Energy Information Agency (EIA), the U.S. has exported more natural gas in the first six months of 2023 than in any other previous six-month period. U.S. companies averaged 12.5 billion cubic feet per day (Bcf/d) in the first half of this year, representing an 11% increase from the same period last year.
Since becoming a net exporter of natural gas in 2017, the U.S. has seen a significant rise in exports, primarily due to increased liquefied natural gas (LNG) exports. The introduction of LNG exports was made possible by Cheniere Energy, which became the first company to export domestically sourced LNG from the Sabine Pass LNG Terminal and the Port of Corpus Christi.
LNG, which is natural gas that has been cooled to -260°F, is 600 times more compact in its liquid form, making it easier to transport and distribute to locations that lack pipeline infrastructure. Deliveries to U.S. LNG export terminals saw a significant increase of 7.1% week over week in the first half of 2023, reaching an average of 13.0 Bcf/d, the highest weekly average since May.
The demand for natural gas in the U.S. has been steadily increasing over the past decade, with a 43% growth reported from 2012 to 2022. This rise in demand is attributed to factors such as the need for feedgas for LNG exports and the shift away from coal in favor of natural gas for power generation. The use of natural gas has greatly contributed to the reduction of carbon dioxide emissions in the country when compared to coal.
In the first half of 2022, the U.S. became the world’s largest LNG exporter, with Texas leading the way. Texas, through its energy production and export infrastructure, played a significant role in providing energy security to European countries, reducing their reliance on Russian-piped natural gas by 40%.
The Port of Corpus Christi played a crucial role in facilitating LNG exports to Europe, with over 90 million tons of LNG being shipped in the first six months of 2022. Additionally, Texas is expected to continue expanding its natural gas production, particularly in the Permian Basin, with the completion of several pipeline projects.
If Texas were its own country, it would rank as the third-largest producer of natural gas and the fourth-largest producer of oil in the world.
– The Center Square
– U.S. Energy Information Agency
– Texans for Natural Gas