The natural-gas economy

Regional Demand

Closer to home, the U.S. is expected to contribute more to capacity growth in North America’s LNG industry over the next few years as compared to its neighbors to the north and south, while the regasification capacity is expected to remain the same for the region, according to GlobalData.

Its report forecasts that total liquefaction capacity in North America will increase to 405.1 million tons per year (mtpa) in the next three years, for an average annual growth rate of 60.6% since 2017. North America is expected to see capital expenditures of $285.5 billion on new liquefaction projects, of which 58% will be spent in the U.S. Thirty-eight liquefaction terminals are expected to have become operational between 2018 and 2022 and total planned liquefaction capacity in North America in 2022 is expected to rise to 376.3 mtpa. North America will account for 72% of total global capacity from planned and announced projects between 2019 and 2023, according to the report.

GlobalData expects liquefaction capacity additions in Canada of around 101.1 mtpa by 2022. The country is expected to spend roughly $105.3 billion on the development of new liquefaction terminals.

“Canada is adding considerable LNG export capacity as its natural gas exports via pipelines to the U.S., are decreasing,” said Soorya Tejomoortula, an oil and gas analyst at GlobalData. Mexico is expected to add around 16.4 mtpa of liquefaction capacity by 2022 and is projected to spend around $12.9 billion on the development of new liquefaction terminals by 2022.

But the U.S. will lead North America in terms of liquefaction capacity additions with 258.8 mtpa, increasing from 19.5 mtpa in 2017 to 287.3 mtpa by 2022, with capital expenditures of $167.28 billion between 2017 and 2022.

“The U.S. is adding substantial LNG liquefaction capacities, redrawing the global LNG landscape,” said Tejomoortula. “Booming natural gas production, especially from shale, is driving the country’s LNG exports.”