Kinder Morgan says US LNG exports and pipeline gas demand from Mexico set for substantial growth
Kinder Morgan Inc. (KMI), the leading US pipeline feed-gas company for liquefied natural gas plants and a key energy infrastructure operator and developer, posted solid first-quarter earnings and forecast a surge through 2030 of LNG exports and pipeline gas deliveries to Mexico.
US forecasts increase in LNG exports this year and a surge in 2025 as new liquefaction plants come on stream
The US Government expects the nation’s liquefied natural gas exports to increase in 2024 and to surge in 2025 as projects currently under construction start to come on stream.
US exporting most LNG globally and cargoes to surge over next year as pipeline natural gas exports also rise
The United States has been exporting more liquefied natural gas than any other country and LNG shipments were expected to surge through the next 12 months while deliveries were also increasing of pipeline natural gas to both Mexico and Canada.
Volatility and constraints outlined in LNG and pipeline natural gas trading in latest global gas review
Global LNG trade increased by 6 percent to 385 million tonnes with economic activity picking up in several countries while supply constraints and rising demand caused significant volatility in prices as nations scrambled to secure LNG cargoes to meet gas demand for the past winter season.
Trading in the LNG sector was one of the issues covered by the 2022 edition of the “Global Gas Report” published by the International Gas Union on the occasion of the 28th IGU World Gas Conference in South Korea.
“Overall, LNG exports grew in 2021, with the US leading the way through its year-on-year increase of 23 million tonnes,” said the IGU in a report covering the past two years.
“This provided security of supply to some extent, especially in a tight market. US LNG recovered well from the cancellation of cargoes and reduced usage of liquefaction plants the previous year,” said the IGU report.
About 48 percent of US export volumes were delivered to Asia, driven by increasing demand in South Korea and China.
The IGU noted that Japan was the third-largest importer of US LNG in 2021, with the three countries accounting for over 36 percent of all US export volumes last year.
Brazil surge
LNG exports to Europe had also increased in March and April 2021, a year before the Ukraine events and after a cold winter had depleted the region’s natural gas in storage.
“Volumes decreased during the following months but increased again in the fourth quarter and peaked in December 2021, as Europe’s natural gas inventories remained low,” the IGU recalled.
US LNG exports to Brazil increased from 2.3MT in 2020 to 7MT in 2021 as an intense drought in the country limited hydro-electric power generation and led to more consumption of natural gas for power.
“LNG exports from Australia, Qatar and Russia remained stable from 2020 to 2021, while there was a decrease in volumes from Nigeria and from Trinidad & Tobago over the same period,” said the IGU report.
Pipeline exports
Pipeline natural gas export volumes also increased last year by 6 percent, mirroring the rebound of global economic activity.
“The US saw an 8 percent rise in pipeline exports to Mexico, while domestic consumption in the country remained low,” the report noted.
In the Asia Pacific region, net gas imports grew by 17 percent, with one-fifth of that incremental volume attributed to increased pipeline imports.
“This was particularly prominent in China, as import volumes rose due to weather-related factors and higher economic activity,” said the IGU.
“Russia’s pipeline export volumes increased by about 4 percent from 2020, with incremental volumes flowing to Germany, Italy and Turkey,” it added.
Europe’s pipeline imports rose by 0.5 percent in 2021, supported by an annual increase in volumes flowing from Algeria.
Russia’s pipeline deliveries to Europe declined further towards the end of the year, resulting in a tighter market and higher gas prices.
The IGU said that natural gas production levels in the Middle East increased, with Iran’s pipeline exports to Turkey and Israel’s pipeline exports to Egypt growing significantly.
US Government forecasts starring role for LNG and domestic natural gas in future energy mix to 2050
Energy consumption will increase in the United States over the next 30 years across a variety of economic scenarios as population and economic growth outpace energy efficiency gains, though natural gas and LNG will retain their starring roles.
Asian and European LNG values stay at sky-high levels but some steam runs out as prices drop 12 percent
Some of the steam has run out of the global LNG price surge as natural gas benchmarks dropped by 12 percent and more across the board for Europe and North Asia while remaining at sky-high seasonal levels as LNG cargo liftings were stable.
US prices mirror torpid LNG market while higher pipeline exports to Mexico offset by Canadian imports
Seven LNG shipments left US plants in the past week compared with eight in the previous week while pipeline natural gas exports to Mexico increased 6.4 percent and feed-gas for plants on the Gulf Coast rose by 18 percent, boosting prices in the region.
US reports shale-gas output surge along with lower price forecast amid LNG export rise
The United States said natural gas production will average a record 91.3 billion cubic feet per day in 2019, up 8.0 Bcf per day from the previous record in 2018, as shale gas begins to dominate the output and opens the way for more LNG and pipeline exports and domestic gas-fired power.
