Millard

A recent report indicates that the demand for U.S.-sourced liquefied natural gas (LNG) is on the rise, even amid endeavors by environmental advocates and the Biden administration to endorse less reliable renewable energy sources.

The analysis conducted by Wood Mackenzie, a worldwide source of data and analytics for the energy sector, revealed that the demand for LNG in Asia is projected to double by 2050, offering nations a cost-effective alternative to coal, the prevalent energy source in the region.

“In the absence of reliable access to affordable resources, it is reasonable for them to revert to a fuel they are accustomed to, which they recognize as likely to be both inexpensive and abundant: coal,” stated Paul Everingham, the CEO of the Asia Natural Gas & Energy Association (ANGEA), which funded the study.

The United States holds the position of the top exporter of LNG globally. As per the U.S. Energy Information Administration, it exported 20.9 billion cubic feet each day to various countries. The exports saw a significant increase in 2022 as the global market turned away from Russian LNG following its invasion of Ukraine.

This surge was threatened last January when the administration imposed a temporary halt on new LNG exports and ceased approvals for additional export terminals, citing the necessity to address climate concerns and lower carbon footprints. A preliminary injunction was granted by a federal judge during the summer.

With the anticipated new Trump administration, there are expectations to lift the temporary halt on exports, and ANGEA is eager for this to occur sooner rather than later. The survey indicated that U.S. LNG could account for up to 33% of the worldwide supply by 2035 if the planned and proposed projects come to fruition.

Emerging economies like Bangladesh, Thailand, and Indonesia encounter specific hurdles.

The Wood Mackenzie analysis cautioned that these Asian markets and the surrounding environment would endure negative consequences should the U.S. LNG pause be enacted. The report forecasted a rise in LNG prices as Asian consumers pivot to less competitive markets rather than the U.S.

This shift would compel these nations to depend on coal, which is cheaper to produce but more harmful to the environment.

Despite assertions from environmentalists that renewable energy from wind and solar sources could ultimately replace fossil fuels, officials from Wood Mackenzie maintain that this scenario is implausible.