LNG

Deutsche ReGas has been granted permanent to operate its Deutsche Ostsee LNG terminal at Mukran port on Rügen in the Baltic Sea, allowing the use of onboard gas generators on two floating storage and regasification units (FSRUs).

INPEX Masala, the Indonesian subsidiary of Japan’s largest oil and gas producer, has received environmental approval for the Abadi LNG project, currently in the FEED stage. The project’s annual production will reach 9.5 million tons – equivalent of more than 10% of Japan’s annual LNG imports.

Commonwealth LNG, majority-owned by Kimmeridge, has received a 20-year regulatory permit to export LNG to countries without free trade agreements (non‑FTA) with the United States, adding to a 25-year FTA export permit. Both authorizations will become effective once the LNG terminal starts commercial operations, or within seven years of issuance.

ExxonMobil has been authorised to develop a $5.09 billion LNG terminal and adjacent gas-fuelled power plant in the Vietnamese port city of Hai Phong. The LNG import terminal is approved with a capacity of 6 mtpa, enough to fuel 2.25 GW of power generation capacity that is scheduled to start operations by 2026/27.

Commonwealth LNG is progressing towards a final investment decision (FID) following final approval from the US Department of Energy (DOE) to export up to 1.21 Bcf/d of LNG to non-free trade agreement (FTA) countries. With all permits now in hand, Kimmeridge is gearing up for an FID in Q3-2025.

Trump trade policies could deeply impact global gas markets: “His opening salvo in a US-China trade war has been fired, with 10% tariffs on Chinese goods and retaliatory 15% tariffs on US LNG, while his stance on Russia remains unclear," Rystad Energy commented. Closer to home, Trump's 10% tariff on Canadian gas drives up prices, squeezes profit margins of smaller producers and could potentially lead to production cuts and delayed investments.

As the Department of Energy (DOE) issued the first LNG export permit to non-FTA countries following a month-long pause, analysts forecast North America’s LNG export capacity could double by 2028 – if projects under construction begin operations as planned. The DOE just granted a permit to New Fortress Energy’s floating liquefaction plant offshore Altamira.

NFE had to delay shipment of the first cargo in July but subsequently exported several LNG cargoes from Altamira to countries with a free trade agreement (FTA) in place. Now, NFE has been authorized to also export LNG to countries that have no free trade agreement with the United States, which include all EU member states as well as Japan and India, among others. The permit is expected to boost Altamira’s exports to up to 1.4 million metric tons through to August 2029, a potential 3% rise.

Commenting on the recent permit for NFE’s Altamira LNG export terminal, assistant DOE secretary or the Office of Fossil Energy and Carbon Management, Brad Crabtree, noted: “These re-exports can diversify global LNG supplies and improve energy security for U.S. allies and trading partners.”

Despite this positive development, it needs to be said that NFE initially requested for their export term to last until the end of 2050 – twenty years longer than what they were granted by the regulator. This term will be re-evaluated in time, allowing NFE to file for an extension after a minimum of two years.

What’s in the making

North America’s total LNG export capacity is on track to more than double from 11.4 billion cubic feet per day (Bcf/d) last year to 24.4 Bcf/d in 2028. Over the coming four years, EIA analysts estimate LNG export capacity will grow by 0.8 Bcf/d in Mexico, 2.5 Bcf/d in Canada, and 9.7 Bcf/d in the United States from a total of 10 new projects that are currently under construction in these three countries.

Five US projects, with 9.7 Bcf/d capacity combined, that are currently under construction include Plaquemines (Phase I and Phase II), Corpus Christi Stage III, Golden Pass, Rio Grande Phase I, and Port Arthur Phase I. Developers expect to produce the first LNG from Plaquemines LNG and Corpus Christi LNG Stage III and ship first cargoes from these projects by the end of 2024.

In Canada, three projects with 2.5 Bcf/d capacity combined are in the making in British Columbia on Canada’s west coast – all supplied with natural gas from western Canada. Developers of the massive 1.8 Bcf/d LNG Canada plan to export a first cargo from Train 1 in the summer 2025. The 0.3 Bcf/d Woodfibre LNG terminal targets aims for a 2027 start-up while the 0.4 Bcf/d Cedar FLNG project reached a final investment decision (FID) in June 2024 and expects to start LNG exports in 2028.