Originally written June 3rd, 2022:
Exports of liquified natural gas (LNG) in the United States have boomed from levels near zero since 2016. The remarkable growth in natural gas production in the U.S. partially explains this trend. December 2021 was a record month for gas production in the country, up about 45% from monthly production levels this time ten years ago, according to EIA data.
Historically low domestic gas prices (at least until spring/summer 2021) led many energy companies to pursue more lucrative alternative markets for their product. LNG was one way to do this. Once converted into liquid form, natural gas can be transported via ocean-going tanker vessels to higher-priced demand hubs all over the world.
The development of Russia’s war in Ukraine have increased American efforts to export LNG, as the EU looks to develop alternative sources of hydrocarbons away from Russia.
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