Liquefied natural gas, LNG, sourced from abundant U.S. production has become attractive to a broad range of customers in both the Atlantic and Pacific basins. Demand for crude oil and products dropped during the pandemic lockdowns, reflected in those U.S. exports (Figure 1). By contrast, U.S. exports of LNG were largely sustained and have reached new highs. U.S. LNG has been relatively cheap, supporting the addition of U.S. sourced natural gas in customer portfolios (Figure 2). Yet price is not the only motivation. A recent workshop organized by the Baker Institute’s Center for Energy Studies (CES) with Western States and Tribal Nations (WSTN) focused on the benefits derived from U.S. LNG exports. We pointed to several tangible benefits of U.S. LNG exports that go far beyond procurement cost. The need for diverse supplies to counter energy security risk and the desire to use cleaner burning natural gas may well sustain U.S. LNG exports to otherwise price-sensitive customers.
