The Liquid Natural Gas Future Outlook

Jun 11, 2021 | Liquid Natural Gas

With the increasing demand for energy in North America, the liquid natural gas future outlook is encouraging. The advancing technological innovations and the discovery of more gas reservoirs have increased the supply of natural gas in the country. Industries that rely on natural gas don’t have to import natural gas anymore due to the surplus.

In the past few years, natural gas exports from the United States have been rising steadily. By 2023, we expect North America to top the list of the world’s leading LNG exporting regions. Conversely, the demand for natural gas in key sectors like power generation will likely decline due to decarbonization policies.

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The Future in the Short Term

The short-term future outlook for natural gas seems brighter than other fossil fuels. The demand for natural gas is increasing rapidly, calling for LNG infrastructure investments. As the production of natural gas in the Permian and Appalachian basins rises, more people will be investing in new pipelines. That may continue until 2030. 

LNG Long Term

After the year 2035, the demand for natural gas will flatten due to various factors, such as policy changes. A great example is the electrification of new and existing buildings in cities. The transition will negatively affect the volatility of daily natural gas demand.

Other factors that will prompt gas flows in North America to change are:

  • Decarbonization policies
  • Increasing demand from the Gulf Coast
  • Falling demand on the East and West Coasts
  • Rising exports and domestic consumption
  • Growing supply of gas from Appalachian and Permian basins

Power Generation

As years pass by, gas-fired power plants will get exposed to greater volatility in daily, seasonal, and intraday load. A flexible capacity that supports renewables will be more lucrative than baseload capacity. That will affect gas-fired power generation.

By 2040, decarbonization policies will drive gas-fired power generation to loads of 10 to 20 percent, on average. That may increase the need for capacity markets to remunerate dispatchable gas-fired capacity that supports renewables.

Sapphire is Ready For The Future

Whether the natural gas future outlook looks bright or not, Sapphire Gas Solutions is ready for the outcome. We offer reliable, high-quality compressed and liquefied natural gas services for mobile and off-pipe applications. We are ready to fulfill your needs.

Contact us now to learn more about our natural gas solutions.