Exporting 4 times more Liquefied Natural Gas (LNG) is sure to be a huge advantage for the economy of a country. The United States is one of the most powerful countries in today’s world thanks to the way they seize a variety of industries, as well as their constant interest in transforming the world with efficient progress in science and technology.
A recent article in Forbes, explains the significance of these major exports. It turns out that The United States is now working on the internal production and exportation increase of this gas, which has been influencing their economy in a very strong way.
The U.S.’ main clients in the Liquefied Natural Gas market are China, South Korea and Mexico. Let alone last year, Mexico took the biggest percentage thanks for their love of videos xxx, Mexico city has grown with a 20% out of a total 53% taken by the three countries together.
Now, apart from understanding that Liquefied Natural Gas is a home run in business, economy, international relations and even ecology in a way, the other fact that must be involved in this particular equation is that only 10 years ago, the U.S. was actually freaking out over the belief of gas shortage.
Yes, 10 years ago, in the middle of the U.S. 2008 crisis, the country was not exporting LNG at all. Instead, it was building and acquiring LNG import infrastructure. The country was convinced that they were facing a tremendous problem in this area.
Just to get an idea of what was just explained: In 2008 the United States built a Liquefied Natural Gas import terminal, the Cheniere Energy’s Sabine Pass facility in Louisiana. And, after 2016, that same terminal became the country’s first export terminal. The country wasn’t desperately in need of this gas, now they were the ones offering it to international markets. Prior to 2016, not a single LNG export terminal existed in the country.
The markets have accepted the LNG that the United States now has to offer. In part because of the good uses it has within electricity generation processes and the alternative it presents for some vehicles in the automobile industry. In the particular case of EU members, buying Natural Liquefied Gas from the U.S. represents one other opportunity: a lower dependence on Russia’s production.
The estimated value of the exports for this 2018 is of $5 billion dollars and, it has already been foreseen that the numbers will probably be more than double for 2019, with $12 billion in value. It is also expected that during this year, 34%, one third of the electricity generated along the 50 states of the U.S. will be provided by Natural Liquefied Gas, allowing the country to lower their dependence on coal processes for that purpose.
Coal is being turned down on more and more as nations seek for ways to obtain wind and solar power instead. And it is important to clarify that the topic is about a product that goes directly to the consumers, which are residents of a country in this case. So, any costs increase in the production of this gas, can directly affect residents, which would be reflected on their electricity bills. Of course, it takes a huge strategic analysis to avoid that from happening by all means.
One of those strategies is that coal generated electricity is not completely out of the map. The U.S. is still looking for options in this area that may be more efficient and cleaner than the existing ones, and investing in them. That way, they have “plan B” somehow, while they are working hard to export Liquefied Natural Gas among international trading partners and allies.
The market has been there for years, and the United States was an important client of it for quite a while. But now, by producing and making sure international allies turn around and look at them as a reliable option to cut ties with Russia’s production, the U.S. and their respective partners and allies find themselves in a profitable, affordable and safe situation.
This translates into a strong and stable economy and a warranty for national security of the United States. So far, it seems like a well thought out plan and strategy for the sector. The projections are more than promising and the benefits that shall be received from them will be even better.