US LNG exports expected to remain flat next year
The US Energy Information Administration (EIA) reported May 11 that the lack of new export capacity means there will be no change in US LNG exports next year.
EIA in its latest monthly market report forecasts LNG exports will average 9.2bn ft3/d both this year and next.
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“Flat LNG exports in 2022 reflect our expectation that limited new export capacity will come online during the forecast period,” the report read.
US LNG exports last month averaged 9.2bn ft3/d, the most since the US started exports in 2016. May levels, however, are expected to reach only 8.6bn ft3/d before moving back toward 9bn ft3/d to meet summer demand in the Asia and European markets.
For the domestic market, EIA expects natural gas consumption will average 82.6bn ft3/d this year, down about 0.7% from last year. Higher prices for natural gas mean some power generators will adopt coal instead. Gas consumption next year is forecast to average 82.5bn ft3/d.
Total US natural gas production is expected to average 91.1bn ft3/d this year, a 0.3% decline from last year, but increase to 93.1bn ft3/d in 2021. The decline for this year is largely a result of the impact that cold February weather had on production centers in Texas. The expected increase in production next year is a reflection of higher commodity prices relative to 2020.