The remarkable growth of the US energy market has been a sight to behold for the international energy sector. Rarely does one country develop its energy market to become the top producer of energy resources in such an accelerated and fast-tracked timeframe. The Louisiana Gateway Pipeline is just the latest in a long line of gas pipelines that are set to boost the already dominant US gas production sector to reach for the stars this year.
The rapid expansion of the US gas and LNG export market has been unprecedented
Under the previous administration, the United States mostly focused on advancing the renewable energy sector to meet emission reduction ambitions. However, since taking office, Donald Trump has been actively advancing the conventional energy market of oil and gas.
The top of the list of US gas and LNG production regions is Haynesville, which has seen a multitude of new gas pipelines being developed by some of the largest energy companies in the US. Haynesville’s location is ideal for LNG exports as it sits near several processing facilities. Additionally, gas and LNG produced in the region are known for their lack of impurities, making it one of the best regions for LNG production anywhere in the world.
Two new LNG pipelines in the Haynesville region are set to boost output capacity this year
The Louisiana Energy Gateway and the New Generation Gas Gathering pipelines are set to dramatically increase the export opportunities for gas in the United States, which has recently become the number one gas and oil producer in the world, driven by the current administration’s executive orders.
The Louisiana Energy Gateway has recently been completed, following delays due to significant legal hurdles. The project’s developer has been working diligently to advance its presence and standing in the United States gas and LNG market through several new pipelines and upgrades to existing ones.
“You go back to before 2015 – we were essentially exporting 0% of U.S. gas – and since then we’ve seen a truly remarkable increase in LNG exports,” – Greg Upton, executive director and associate professor of Research at Louisiana State University’s Center for Energy Studies
William’s Louisiana Energy Gateway Pipeline has entered service
The company has stated that, following several delays, it was able to commission the Louisiana Energy Gateway Pipeline last year, and the pipeline is now flowing vast amounts of natural gas from the Haynesville basin to processing facilities, which has become a necessity to meet the substantial appetite for American natural gas.
Williams has noted that it expects the Louisiana Energy Gateway Pipeline to reach a full-scale operational capacity of 1.8 billion cubic feet of natural gas per day by the end of 2026, marking the continued expansion of the already dominant US gas and LNG market on the global stage.
As new gas pipelines pop up in the US market like a wack-a-mole, several exceedingly large energy companies are set to reshape the global energy market this year.
“Now the U.S. exports about 12% of the gas it produces, and the growth in LNG exports over the last 10 years has been an important driver in the in growth in the Haynesville Shale. The new pipelines are needed to connect the gas produced in the Haynesville Shale to the export facilities,” – Greg Upton, executive director and associate professor of Research at Louisiana State University’s Center for Energy Studies
The US now dominates the global gas and oil markets
The United States recently overtook China to become the number one producer by capacity of gas and oil in the world. This significant growth has been driven by the myriad of new gas pipelines that litter the US, and with the new potential of oil from Venezuela, the US energy market is set to reach new heights this year and potentially into next year too.