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In 2016, Cheniere Energy of the USA became one of major supplier of LNG to Europe and Asia Pacific continent from its Sabine Pass liquefaction facility in Louisiana

May 2017 : Global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea. With the advancement of shale gas production in US, there has been a paradigm shift as US is set to become third largest exporter of LNG by 2018.

As of 2016, around four LNG facilities are being developed in Maryland and Gulf Coast of United States, which are expected to be completed by 2021, with an aggregate capacity of 9.2 Bcf/day (Billion cubic Feet per Day), which is anticipated to make the US, the world’s second largest exporter of LNG after Qatar by 2025. The US has also been benefitted from the opening of wider Panama Canal which has considerably reduced lead time for movement of LNG from the US thereby making US LNG highly competitive. 

                                                                                          US LNG Exports and Re-Exports (Million Cubic Feet)


                                                                                                             Source: US Energy Information Administration

The rapid economic transformation of Asian Nations such as China, India, Indonesia would serve as a major driving force for the growth of US LNG exports. Also, the depleting reserves of natural gases in the Middle east would pose a challenge to the European market, thereby shifting the focus of European nations to meet their demand for LNG from US. The geographical proximity of Europe to US would also make European LNG imports from US financially viable.

Major US LNG Exports Market, By Country (Million Cubic Feet) 

S. No.


LNG Exports








South Korea











The growing US LNG exports is facilitated by companies such as Cheniere Energy, which, in 2016, became the first company to export LNG from US. The company has natural gas liquefaction facilities for exports in Sabine Pass terminal in Louisiana. As of April 2017, Cheniere Energy transported Sabine Pass cargoes to 18 countries.  The surge in demand for LNG from US has prompted the company to develop 6 trains, out of which, 5 trains are expected to become operational by 2019. The development of such terminals would enhance the capability of US to facilitate its LNG exports.

                                                                                                                                                                                                                                                                                                                                                Source: US Energy Information Administration

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