LNG (Liquefied Natural Gas) is natural gas cooled at around 260? Fahrenheit to a liquid state for storage and shipping. In the United States, natural gas is central to its economy. Some power plants store and make LNG to generate electricity to meet the high demands during cold and hot weather. Also, to meet the demand when pipeline delivery capacity is insufficient.
Until 1995, the US imported minimal amounts of LNG. It increased every year, peaking in 2007, constituting around 17% of the total natural gas imports. Since 2007, it has declined due to the increased natural gas production and the expansion of the natural gas pipeline networks.
Currently, the country is witnessing increased exports with rising LNG and natural gas prices in Europe and Asia. Also, the growing demand for LNG globally and the consistent unplanned outages at LNG export facilities in several countries contribute to the rising US LNG exports.
Furthermore, with the surging demand, LNG business models are changing due to technological advancements and increased resource availability. Besides, as per estimates, the next five years are expected to be challenging for LNG traders, buyers, and producers, since the LNG market is rapidly evolving. Moreover, the rising economic prospects, government regulations, and growing prioritization on enhancing air quality are set to propel the demand for low-carbon energy sources, including natural gas.