The U.S. LNG sector is benefitting from a dramatic increase in contracts and approvals for new LNG export terminals since Russia’s invasion of Ukraine, part of a global surge in export capacity that is also being led by Russia, Canada, Mexico, and Qatar. A substantial increase in new LNG import terminals under development is led by China, India, Brazil and Germany.
North America has the most LNG export capacity in development by region, 461 mtpa of projects costing an estimated USD$321 billion, led by the U.S. with 322.5 mtpa, Canada with 75.6 mtpa, and Mexico with 62.5 mtpa.
The U.S. became the leading exporter of LNG in the first half of 2022. The development of new U.S. export projects has been accelerating since February 2022, with two terminals achieving final investment decisions (FID) and five securing their first long-term contracts. The U.S.’s 322.5 mtpa of new projects comprises half of global export capacity under development.
Despite sanctions and a shrunken market for its existing gas supplies, Russia is seeking to develop 113.4 mtpa of new export capacity.
For U.S. projects, sales and purchase agreements signed since February 2022 are predicated on new and increased exports to countries whose energy markets have been disrupted by the war in Ukraine and resulting energy crisis in Europe, including China, South Korea, Malaysia, Germany, Poland, and the UK.
Asia has the most new LNG import capacity in development, 442.2 mtpa of projects costing an estimated USD$120 billion, which is 65% of the world’s LNG import terminals in development. Import projects in Europe amount to 164.7 mtpa and comprise 24% of the global total.