U.S. Energy Information Administration (EIA) said Monday that the United States exported more natural gas than it imported in 2017, making the country a net exporter the first time since 1957.
According to EIA, the transition to net exporter occurred as natural gas production continued to grow, reducing pipeline imports from Canada and increasing exports, both by pipeline and as liquefied natural gas (LNG).
Natural gas production in the United States increased significantly over the past decade. The United States surpassed Russia in 2009 as the world's largest natural gas producer as shale gas production drove overall increases in natural gas production.
U.S. natural gas pipeline capacity into Mexico has also increased over the past few years, driven by growth in demand for natural gas from Mexico's power sector and favorable prices compared with natural gas supplied by LNG shipments.
U.S. LNG exports increased dramatically over the past two years as new liquefaction capacity has come online.
The only liquefaction terminal previously operating in the United States-the Kenai LNG terminal in Alaska-ceased operations in 2015. In 2016, as the Sabine Pass LNG terminal in Louisiana began to ramp up operations, U.S. LNG exports increased. Sabine Pass now has four operating liquefaction units, with a fifth currently under construction.
The Cove Point LNG facility in Maryland exported its first LNG cargo on March 1. Cove Point is the second currently operating LNG export facility in the United States, after Sabine Pass. Four other LNG projects are under construction and expected to further increase U.S. natural gas exports.
EIA's Short-Term Energy Outlook projects that the U.S. position as a net exporter of natural gas will be strengthened in 2018 and 2019.
The United States is a key market to provide new sources of fuel for China. Houston-based Cheniere Energy last month signed the first-ever long-term deal with China National Petroleum Corporation (CNPC), a state-owned energy company, which is a major step forward for the industry.
Cheniere CEO Jack Fusco said at CERAWeek, held in Houston earlier this month, that Chinese demand for LNG was up 40 percent year-over-year and should continue to be strong.
According to the deal, Cheniere will sell about 1.2 million tons of LNG a year to CNPC, as part of two sales agreements that extend through 2043. Shipments will begin this year.
During U.S. President Donald Trump's first visit to China in November, Cheniere Energy signed an MOU with CNPC for long-term LNG sales and purchase cooperation.
As the owner of the first LNG export terminal in the United States, Cheniere Energy is the leading exporter of U.S. liquefied natural gas.
Editor:Amber
