Why Countries Are Pouring Billions into Liquefied Natural Gas
May 23, 2024 · 9:29
The 2022 Nord Stream pipeline shutdown and explosion transformed the global natural gas trade, making liquefied natural gas (LNG) central to energy security. Fracking created a U.S. gas surplus, and the $18 billion Sabine Pass terminal opened in 2016, making the U.S. the world's largest LNG exporter by 2022. When Russia cut off gas flows, Germany, which had no regasification terminals, built three in 18 months to import U.S. LNG from Freeport Gulf Coast in Texas. The Freeport explosion that destroyed 20% of U.S. export capacity showed how global spot markets now expose American gas prices to worldwide shocks. With permits already issued, U.S. export capacity will triple in three years, likely raising prices as EVs and generative AI lift electricity demand; 200 new LNG tankers launch by 2027.
