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Sunday, May 12, 2013

Natural gas imports and exports

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The United States consumes more natural gas than it produces. While most of the natural gas consumed in the United States is produced domestically, imports from other countries are also an important source of supply. The United States is a "net importer" of natural gas, meaning that it imports more natural gas than it exports.

Reliance on natural gas imports has declined in recent years due to a surge in natural gas production, resulting from more efficient, cost-effective drilling techniques, notably in the production of natural gas from shale formations. Net imports (imports minus exports) of natural gas accounted for 8% of U.S. natural gas consumption in 2011, compared to the 2007 peak of 16%.

Natural gas can be transported in two ways:
  1. Via pipeline — Forty-eight natural gas pipelines, representing approximately 28 billion cubic feet per day of capacity, imports, and exports natural gas between the United States and Canada or Mexico.
  2. Via ship in the form of liquefied natural gas (LNG)
In 2011, 90% of net imports came by pipeline, primarily from Canada, and 10% came by liquefied natural gas (LNG) tankers carrying gas from around the world.

Pipeline Imports of Natural Gas are Mostly from Canada

In 2011, net pipeline imports totaled 1,670 billion cubic feet, or 7% of total natural gas consumption. The United States received almost 90% of its pipeline-imported natural gas from Canada with the remainder from Mexico.

The United States Imports a Small Amount of Liquefied Natural Gas (LNG)

In 2011, LNG imports totaled 349 billion cubic feet, or about 1% of total natural gas consumption. LNG imports from Egypt, Qatar, Trinidad and Tobago, and Yemen contributed about 90%of total LNG imports.

Most Natural Gas Exports Go to Canada and Mexico

Exports of natural gas peaked in 2011, largely due to expanded pipeline exports to Canada and Mexico. Canada accounted for 62% of pipeline natural gas exports, and Mexico accounted for 33%. U.S. exports of natural gas also include:
  • Domestically produced natural gas shipped to Japan as LNG
  • LNG originally imported to the United States that is "re-exported" to new destinations where prices are higher

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