Total U.S. natural gas liquefaction capacity in the Lower 48 states rose to 2.8 billion cubic feet per day (Bcf/d) following the completion in August of the fourth liquefaction unit at the Sabine Pass liquefied natural gas (LNG) terminal in Louisiana.
The Energy Department’s Energy Information Administration (EIA) says that with increasing liquefaction capacity and utilization, U.S. LNG exports averaged 1.9 Bcf/d, and capacity utilization averaged 80 percent, based on data through November.
Sabine Pass, located on the U.S. Gulf Coast near the Louisiana-Texas border, consists of four existing natural gas liquefaction units, or trains. A fifth train is currently under construction. When complete, Sabine Pass will have a total liquefaction capacity of 3.5 Bcf/d.
Five additional LNG projects are currently under construction in the United States and are expected to increase total U.S. liquefaction capacity to 9.6 Bcf/d by the end of 2019:
- Cove Point liquefaction terminal (one train, 0.75 Bcf/d capacity) in Maryland is 97 percent complete, and Dominion Energy expects to place it in service before the end of 2017.
- Elba Island LNG (10 modular liquefaction trains, 0.03 Bcf/d capacity each) in Georgia is owned by Kinder Morgan. Six trains are scheduled to come online in the summer of 2018, and four trains are scheduled to come online by May 2019.
- Freeport LNG (three trains, 0.7 Bcf/d capacity each) in Texas is being developed by Freeport LNG Development, L.P. The first train is expected to come online in November 2018, with the remaining two trains following in six-month intervals.
- Corpus Christi (two trains, 0.6 Bcf/d capacity each) in Texas is being developed by Cheniere and is expected to come online in 2019.
- Cameron LNG (three trains, 0.6 Bcf/d capacity each) in Louisiana is being developed by Sempra LNG and is expected to come online in 2019.
Overall utilization of existing LNG liquefaction facilities is expected to average 80 percent in 2017 and 79 percent in 2018, based on LNG export projections by EIA.
At Sabine Pass, the ramp-up process, combined with maintenance on Train 1, resulted in capacity utilization for Trains 1 and 2 averaging 51 percent in 2016. Capacity increased in 2017 with the addition of Trains 3 and 4, but the ramp-up periods for those trains, as well as lower spring demand in markets in Asia and Europe and disruptions caused by Hurricane Harvey in August, limited total utilization.
EIA says that exports from Sabine Pass began to increase in September 2017 as Train 4 ramped up to full production — reaching 2.7 Bcf/d in November —w ith an overall capacity utilization rate of 96 percent across four trains. Utilization at Sabine Pass is projected to remain above 90 percent in winter 2017–2018 as a result of expected strong natural gas winter demand and high spot LNG prices in Asia and Europe.