Texas will soon become a leading exporter of liquefied natural gas (LNG) according to participants in a panel briefing on December 13 sponsored by the South Texas Energy & Economic Roundtable.
Representatives from Kayne Anderson Capital Advisors, EnerVest Ltd., Chenier Energy and TIPRO discussed how this development will affect the state’s policies and economy moving forward.
During the panel, participants discussed the history of the nation’s decades-old ban on oil and gas exports. In 2015, the U.S. Congress agreed to lift the ban, paving the way for the U.S. to become a world leader in the exportation of petroleum products.
Due to recent advances in extraction technology, the U.S. now has an abundance of oil and gas on hand. Lifting the ban allowed U.S. producers to export excess petroleum abroad, rather than be forced to store the resource until domestic demand catches up with production.
Chenier Energy was the first U.S. company to export LNG abroad through their facility at the Port of Corpus Christi on December 11. The Energy Information Administration forecasts that U.S. LNG export capacity will reach 4.9 billion cubic feet of natural gas per day by year-end and 8.9 billion cubic feet per day by the end of 2019.
For additional information on LNG exports and Texas state policies, please contact PESA VP Government Affairs, Tim Tarpley.