The US is set to dominate the number of North America’s planned LNG liquefaction projects by 2026.
It will contribute around 68% of the total project startups between 2022 and 2026, according to data and analytics company, GlobalData.
As a result of Russia’s invasion of Ukraine, US LNG export projects received a massive boost, as European and Asian buyers increasingly looked towards the US to reduce their reliance on Russian gas.
GlobalData’s latest report, ‘Global LNG New-Build and Expansion Projects Outlook to 2026’, revealed that the US had already dominated the Americas region, while forthcoming LNG liquefaction projects will add 196 mill tonnes per annum of capacity between 2022 and 2026.
The largest US project is Driftwood Phase I with a capacity of 16.6 tonnes per annum. It is currently under construction and is expected to start operations by 2026.
Owner Tellurian has definitive agreements in place with TotalEnergies, Vitol and India’s Petronet to supply LNG produced from Driftwood.
Rio Grande Phase I is another major US project with a capacity of 16.2 mill tonnes per annum. A final investment decision (FID) has been delayed and is now targeted for the second half of this year.
A lack of adequate long-term LNG contracts seemed to be the key reason for the FID’s delay, GlobalData said.
However, the project’s owner, NextDecade, has recently signed a 20-year agreement with Chinese company Guangdong Energy Group, boosting the FID’s chances. NextDecade now has three LNG supply agreements in place for this project.