September 2025 Vol. 80 No. 9
Editor's Log
Editor’s Log: Everybody’s talking about LNG
By Robert Carpenter, Editor-in-Chief
(UI) — Around the globe, natural gas continues to become the primary hope for reliable energy for countless nations. Just how they get that energy is having a tremendous impact on worldwide markets, particularly liquified natural gas (LNG).
U.S. LNG export capacity is expected to double by 2028, with projects like Golden Pass, Plaquemines and Corpus Christi Stage 3 leading the charge. Billions are flowing into liquefaction trains, storage tanks and marine loading infrastructure. Further, the U.S. is poised to remain the world’s top LNG exporter through 2030, but must navigate global competition from Qatar, Australia and Russia.
Global LNG demand is expected to rise by 3-to-5 percent annually, driven by Asia’s industrial expansion and Europe’s energy diversification. By 2028, global LNG trade could exceed 550 million metric tons per annum (MTPA), up from 400 MTPA in 2023.
This is good news for pipelines and an industry that only recently was stagnated, due to the President Biden Administration’s efforts to thwart further development and use of carbon-based energy sources. With the President Trump Administration, the focus has returned to developing all kinds of energy sources but particularly the gas and oil markets.
It became apparent that, while clean energy development is always desirable, it is not ready to replace the power generation needs of the U.S., especially when faced with the increased needs of the Artificial Intelligence industry.
Domestic pipeline infrastructure is critical for feeding current U.S. LNG terminals, particularly the new developments along the Gulf Coast. Increased export volumes are driving pipeline expansions from shale basins to coastal terminals. Interstate pipeline congestion may require further pipeline work, too, in terms of upgrades to avoid bottlenecks as export capacity grows.
In the U.S., gas is a well-established, reliable and plentiful energy source. And while it may not be as environmentally desirable as the trendy solar and wind power, it nonetheless remains a relatively clean fuel. It emits 50-to-60-percent less carbon dioxide than coal and 25-to-30-percent less carbon dioxide than oil-based fuels.
Canada is looking to compete step by step with the U.S. in bringing its gas in LNG form to markets like Japan, South Korea and China. Canada’s first major LNG Canada Phase 1, in Kitimat, British Columbia, began operations in June and is capable of exporting 1.9 billion cubic feet per day (Bcf/d). It is the largest private investment in Canadian history. LNG Canada Phase 2 is under consideration and would double production, making it the second-largest LNG facility in the world.
Consequently, Canada is also building pipelines to feed the LNG export terminals. New pipelines are being built to connect the Western Canada Sedimentary Basin, which holds over 1,100 trillion cubic feet of marketable gas, to coastal LNG terminals.
These pipelines traverse challenging terrain and Indigenous lands, requiring careful planning and consultation. However, cooler ambient temperatures in British Columbia reduce liquefaction energy needs, making Canadian LNG cheaper to produce.
Canada is hoping to position itself as both a clean-energy and conventional-energy superpower. It is part of a national strategy to reshape its energy future.
LNG has a bright future for both the U.S. and Canada, if both countries are prepared to overcome political complications and build the pipelines and facilities to allow reach around the world. Our allies in Europe were counting on us to supply gas when the Russia-Ukraine war broke out. A huge lever against Russia’s aggression would have been for Europe to quit funding Russia’s war effort by buying oil and gas from other sources.
Unfortunately, that could not happen as our energy production was stalemated, and pipeline projects were in largesse from domestic political battles. We were not ready to step up. Instead, we failed our allies.
Now, the U.S. is pushing forward with LNG export terminals and pipelines are being constructed, or in the works, to transport the volumes needed. The situation has changed for LNG and we cannot fail in our responsibilities again. And we should not sacrifice reasonable economic opportunities for poor choices – even if politically correct.
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