There have been a number of stories here about how great the Biden decision to close further approvals of LNG exports will be. But that is a mere sliver of silver in the looming cloud of LNG exports already approved.
The Federal Energy Regulatory Commission (usually called The FERC, pronounced as the furk) is the final agency that approves construction of facilities to export natural gas. The Coast Guard and the Dept of Energy must approve the permit to export natural gas but the FERC approves building those massive facilities.
There are currently 7 LNG export facilities operating in the US with a capacity of 12.6 Bcf/day (billion cubic feet per day — a common industry measurement). In comparison, the average US consumption 85 Bcf/day. LNG average exports in the first half of 2023 were 11.6 Bcf/day, or about 13% of total usage.
That is now. But that is the tip of the iceberg.
There are two additional LNG export facilities already under construction. They will add another 3.67 Bcf/day of export capacity — or just under a 30% increase. That is where we are right now.
But the FERC has already approved an additional 14 export facilities. By my reading, these are outside the Biden decision — they are already approved and just are waiting to be built. And they would add another 26.85 Bcf/day of export capacity — a 165% increase in export capacity.
The 16 new facilities (2 under construction and 14 to be built) would also represent a 35% increase in average US demand for natural gas. A demand that would require a massive expansion in drilling, gas pipelines, and ancillary activities.
So, let’s cheer the Biden decision but recognize it does not slow in any way the next ten years of natural gas drilling activity.
The LNG facility information in the article comes from a US Dept of Energy powerpoint to be found here