President Donald Trump has already said he’s committed to building a gas pipeline from Canada to the US, a move that will allow the US to become a global liquefier and boost the US’s exports of gas to the rest of the world.
But what happens if the US is unable to deliver the pipeline?
The short answer is: It’s going to be a bit messy.
The US is already one of the largest exporters of liquified natural gas (LNG) worldwide, and is expected to grow that market by more than 2.5 per cent per year over the next decade, according to the International Energy Agency.
The US already has about 10 per cent of the global LNG market, and the country’s liquefaction capacity has already been expanded to 4.2 billion cubic metres of LNG in 2017.
The number of LNGs exported annually is expected in 2024 to reach 6.1 trillion cubic metres, and that figure is expected grow to 6.7 trillion cubic meters by 2032.
In the past, there have been three LNG export terminals built in the US: the Keystone XL pipeline from Alberta to the Gulf Coast and the LNG import terminal in Port Arthur, Texas.
However, the Port Arthur terminal was closed in 2016, with the pipeline to Texas being built instead.
The Port Arthur project was halted in 2021 because of environmental concerns, but is expected back up by 2024.
In 2019, the US was the largest LNG exporter, with $13.5 billion of exports and imports.
The International Energy Market will be expected to have a total of $31.2 trillion LNG exports by 2034.
The global LNG market is expected increase by about $1 trillion annually.
The second option is to build a pipeline to China, which is expected by the IEA to have the most LNG capacity and a growing market.
In 2021, the Chinese had more than $18 billion of LNFG exports, according the IAEA.
However, China is not the only country with a large LNG industry, with South Africa and Argentina both already importing large volumes of LNTG.
China is expected, in 2024, to import $12.5 trillion of Lng NG.
And the LNTGs are expected to be more valuable than LNG due to the natural gas extraction process, and are more durable, cheaper and less environmentally damaging than LNTs.
The final option is building a pipeline from the US and Europe to the Chinese, which would provide a large volume of LNNG to China.
The IEA estimates that this will be cheaper and quicker than the current US-EU LNG pipeline, and will increase China’s LNG imports by up to 20 per cent.
However the US does have a lot of advantages when it comes to LNG.
In 2018, it had about $21.8 billion in LNG sales, with Canada coming in second with about $19.3 billion.
US LNG production is projected to grow by nearly 40 per cent in 2024.
The IEA also projects the US market will increase by another 10 per cents of a cent per annum by 2026.
That’s a big chunk of change for the US.
And with gas prices at $4.60 per million British thermal units (MMBtu) in 2018, the increase is significant.
If all of this is true, then the US can expect to export LNG to China in 2024 for $8.2 per MMBtu.
That is nearly $20 a tonne more than what it would cost to import the same amount of LNPNG from Canada.
But there is still a risk.
The LNG produced in the United States is less expensive to process than LNP NG, and it has been found that the processing costs of LPG are not a major factor in the price of LNMG, which comes from the same region as LNG, and which is more expensive to produce.
And because LNG is a renewable fuel, it is also more environmentally friendly.
So, how do we get LNG from the United Kingdom to China?
One option is using the Exeter-based LNG Terminal (ELT), which is built by Exeter Ports and operated by Elta UK.
This terminal is the largest export terminal for LNG worldwide.
It has an operating capacity of almost 5 million cubic metres per year.
The other option is the LNNG Export Facility, which has already begun operations.
It is operated by the UK company LNG North and is currently the only one of its kind in the world, having been approved by the Export Control Agency in February 2018.
This facility is a joint venture between Exeter and LNG South.
It has a capacity of 5.8 million cubic meters of LNVNG and is designed to export 1.4 million MMBtpd of LNSG per year, or 1.2 million Mmb