Washington: The implementation of investment plans in the energy sector supported by US President Donald Trump could increase the American capacity to produce and export liquefied natural gas (LNG) by a maximum of three times by 2030.
According to Azeri-Press News Agency, this development could significantly alter the market dynamics of LNG within five years, as reported by the leading Japanese economic newspaper Nikkei, referencing calculations by the Japanese Institute of Energy Economics.
Trump, the newspaper recalls, removed the restrictions set by the previous US administration on new permits for LNG production. Due to these former restrictions, no new LNG projects were registered in 2024. In contrast, by 2023, the United States had surpassed Australia to become the world’s largest LNG exporter, contributing to 20% of global liquefied natural gas supplies in 2024.
According to estimates by the Japanese Institute of Energy Economics, if major investment projects are realized, the annual LNG production in the United States could rise by 123 million tons. By 2030, production may increase by at least 1.9 times compared to 2024, and potentially up to three times. This would represent the largest increase in LNG production in history, as noted by Hiroshi Hashimoto, an expert at the Institute. Consequently, the International Energy Agency (IEA) predicts that LNG prices might drop by almost half in the European Union and Japan.
However, Nikkei highlights that some experts, including those from the IEA, express skepticism about these forecasts. The expansion of LNG production demands substantial initial investments, amounting to billions of dollars, and investors are unlikely to commit without strong assurances of success. Under these circumstances, many new LNG production projects in the United States might not come to fruition. Notably, in 2024, the global increase in LNG output was 3.5 times less than previously expected, as reported by Nikkei.
Source: Azeri-Press News Agency