LNG Exporters

• In 2002, 12 countries exported 5.4 Tcf (113 million tons) of natural gas as LNG, up from 9 countries and almost 4 Tcf (84 million tons) in 1997.
• Indonesia is the world’s largest LNG producer, exporting about one-fifth of the world’s total volume in 2002.
• The Pacific Basin⁴ is the largest LNG-producing region in the world, supply­ing nearly half (49%) of all global exports in 2002. Indonesia alone supplied 21 percent. Countries in the Middle East, led by Qatar, exported 23 percent, while countries in the Atlantic Basin, led by Algeria, exported about 29 percent that year.
• In the first nine months of 2003, two new LNG trains began operating in Trinidad and Tobago and in Malaysia, increasing world annual liquefaction capacity⁵ by around 6 percent to 6.6 Tcf (135 million tons).
• New projects under construction in Australia, Russia, Norway, and Egypt, together with expansions of existing facilities throughout the world, will increase annual liquefaction capacity by 2.8 Tcf (58 million tons) by 2007, increasing global capacity to 9.4 Tcf (197 million tons) per year, which represents 10 percent of 2002 global natural gas consumption.
• Potential new exporters such as Iran, Yemen, Equatorial Guinea, Angola, Venezuela, Bolivia (via Peru or Chile), and Peru are looking to LNG exports as a way of monetizing their natural gas resources.

Pacific Basin Exporters

Pacific Basin LNG exporters produced 2.6 Tcf (55 million tons) in 2002, about 49 percent of total world LNG production. As of late 2003, five Pacific Basin exporters had 3.1 Tcf (63 million tons) of annual liquefaction capacity. Liquefac­tion capacity in the Pacific Basin is expected to increase by 780 billion cubic feet (Bcf) or 16 million tons of annual capacity over the next few years to more than 3.8 Tcf (80 million tons) per year by 2007.

• Indonesia is the world’s largest LNG producer and exporter. In 2002, Indonesia exported 1.1 Tcf (23 million tons) of LNG or 21 percent of the world’s total LNG exports. Most of Indonesia’s LNG is imported by Japan with smaller volumes going to Taiwan and South Korea. Indonesia’s annual liquefaction capacity is 1.4 Tcf (30 million tons) from the two exporting complexes at Bontang and Arun. An additional train at Bontang is under consideration but has yet to contract for the capacity. BP is leading development of a two-train, 341-Bcf-per-year (7.0-million-tpy) project at Tangguh scheduled to start up in 2007. The Tangguh LNG is destined for China, other Asian markets, and potentially the United States.
• Malaysia, the world’s third largest LNG exporter after Indonesia and Algeria, exported 741 Bcf (15.6 million tons) in 2002. These exports went primarily to Japan, with smaller volumes to Taiwan and South Korea. Three liquefaction terminals have been developed at the Bintulu LNG complex in Sarawak, Malaysia Satu, Dua, and Malaysia Tiga, the first train of which went on-stream in mid-2003. A second train will come online in November 2003, raising the total capacity of the Bintulu complex to an annual 1.1 Tcf (22.7 million tons).
• Australia exported 367 Bcf (7.7 million tons) of LNG from the Northwest Shelf project in 2002, primarily to Japanese utilities. The project owners have started construction on an additional 205-Bcf-per-year (4.2-million-tpy) train scheduled to come online in 2004. An additional train is under consideration. Three new projects are also in various stages of development. ConocoPhillips has begun construction on a 175-Bcf-per-year (3.6-million-tpy) Darwin LNG project, to monetize reserves in the Timor Sea shared by Australia and East Timor. ConocoPhillips is also working with Shell, Osaka Gas, and Woodside Petroleum to develop the 258-Bcf-per-year (5.3-million-tpy) Greater Sunrise project via a floating LNG facility. ChevronTexaco, in partnership with ExxonMobil and Shell, is spearheading a two-train Gorgon project with an annual capacity of 487 Bcf (10.0 million tons) to monetize reserves discovered offshore Northwest Australia.
• Brunei Darussalam has a two-train liquefaction terminal at Lumut with an annual capacity of 351 Bcf (7.2 million tons). About 90 percent of its output goes to customers in Japan and the remaining 10 percent to South Korea.
• The United States has a 68-Bcf-per-year (1.4-million-tpy) liquefaction terminal at Kenai, Alaska, that has been exporting LNG to Japan for more than 30 years. There are currently no plans to expand this facility.
• Russia’s first LNG plant is under construction on Sakhalin Island off Russia’s east coast. The two-train facility will have an annual capacity of 466 Bcf (9.6 million tons), with exports of 234 Bcf (4.8 million tons) per year from the first train scheduled to begin in 2007. The partners have already secured sales contracts with three Japanese utilities for 136 Bcf (2.8 million tons) per year over 20 years. There are reports that Russian officials have also expressed interest in exporting LNG from the giant Shtokman field in the Barents Sea to the United States and elsewhere.

Middle East Exporters

Exporters from the Middle East produced 1.2 Tcf (25 million tons) in 2002, about 23 percent of total world LNG production. As of late 2003, the three Middle Eastern exporters had 1.4 Tcf (29 million tons) of annual capacity. Expansions to facilities in Qatar and Oman will add 619 Bcf (13 million tons) of annual liquefaction capacity, increasing Middle East capacity to 2.0 Tcf (42 million tons) per year by 2007.

• Qatar ranks fourth in world LNG exports and has an annual capacity of 726 Bcf (14.9 million tons) from two liquefaction plants owned by the Qatargas and Ras Laffan LNG (RasGas) consortia. The Qatargas plant is being debottlenecked, and two more trains are being added to the RasGas facility, which would add 458 Bcf (9.4 million tons) of annual capacity by 2005. Most of Qatar’s exports go to customers in Japan and South Korea, but short-term cargos have also been shipped to the United States and Europe. Its enormous natural gas reserves and low upstream production costs give Qatar the potential to signifi­cantly expand its LNG exports to a targeted annual capacity of 2.9 Tcf (60 million tons) by 2015.
• Oman has one LNG export terminal, which began operation in 2000 with two liquefaction trains and an annual capacity of 356 Bcf (7.3 million tons). Most of the LNG is sold to South Korea’s Kogas. Smaller volumes are shipped to customers in Japan, the United States, and Europe. A planned third train would add 161 Bcf (3.3 million tons) per year in 2006. Further expansion potential for LNG exports from Oman is limited by the modest size of the country’s reserves.
• The United Arab Emirates (UAE) has the world’s fifth largest natural gas reserves and ranks ninth in LNG exports. Abu Dhabi Gas Liquefaction Co. operates the nation’s only export facility with a capacity of 278 Bcf (5.7 million tons). Roughly 90 percent of UAE LNG production is exported to Japan. Despite its large reserves, the UAE is unlikely to expand its pro­duction of LNG since it uses much of the gas for domestic purposes.

Atlantic Basin Exporters

Atlantic Basin exporters produced 1.5 Tcf (32 million tons) in 2002, about 29 percent of total world LNG production. As of late 2003, Atlantic Basin LNG producers had 2.1 Tcf (43 million tons) of annual capacity. Expansions in Nigeria and Trinidad and Tobago, as well as new facilities in Egypt and Norway, would increase annual Atlantic Basin liquefaction capacity to 3.3 Tcf (73 million tons) by 2007.

• Algeria was the second largest LNG exporter in 2002, shipping 935 Bcf(19.6 million tons) mainly to Europe (France, Belgium, Spain, and Turkey) and the United States. A major renovation in 1999 raised the country’s LNG production capacity to more than 1.1 Tcf (23.1 million tons) per year. Algeria also exports more than 1.0 Tcf of natural gas per year to Europe by pipeline. The Algerian State-owned oil and gas company Sonatrach owns and operates four liquefaction complexes, the first of which started up in 1964, making Algeria the world’s first LNG exporter. Algeria has no new liquefaction capacity planned before 2008 but in the long term is planning to add another train.
• Nigeria exported 394 Bcf (8.2 million tons) of LNG in 2002, mainly to Turkey, Italy, France, Portugal, and Spain. Nigeria has also delivered more than 20 cargos under short-term contracts to the United States over the past three years. The total annual capacity of Nigeria’s Bonny Island LNG plant is 463 Bcf (9.5 million tons), and Nigeria LNG has begun construction of two additional 200-Bcf-per-year (4.1-million-tpy) trains that are scheduled to begin operation in 2005. Additional trains are under discussion as are three new projects that have been considered in the West Niger Delta (by ExxonMobil, ChevronTexaco, and ConocoPhillips), Brass River (by the Italian company ENI and ConocoPhillips), and a floating offshore project (by Statoil and Total).
• Trinidad and Tobago exported 189 Bcf (4.0 million tons) of LNG in 2002. Trinidad and Tobago’s LNG facility at Point Fortin has three trains and an annual capacity of 482 Bcf (9.9 million tons). In June 2003, the Government of Trinidad and Tobago approved the construction of a fourth train that could produce an additional 253 Bcf (5.2 million tons) per year. Trinidad and Tobago exports LNG to the continental United States, Puerto Rico, Spain, and the Dominican Republic.
• Libya exported 21 Bcf (0.4 million tons) of LNG in 2002. The plant at Marsa El Brega has an annual capacity of about 131 Bcf (2.7 million tons). Only about 25 percent of the total capacity, or 29 Bcf (0.6 million tons) per year, is available for export due to maintenance issues.
• Two LNG export projects are being built in Egypt: a one-train liquefaction facility at Damietta, which will start operations in 2004 with an annual capacity of 244 Bcf (5.0 million tons), and a two-train project at Idku with a 2005 startup date and a projected annual capacity of 175 Bcf (3.6 million tons). All of the Idku LNG is contracted to Gaz de France. Commitment to a second 175-Bcf-per-year (3.6-million-tpy) train was announced in September 2003. British Gas (BG) has agreed to buy the entire output for U.S. and Italian markets.
• Beginning in 2006, Norway plans to export LNG from a 200-Bcf-per-year (4.1-million-tpy) liquefaction terminal now being built on Melkøye Island in the Norwegian Sea. Exports are targeting markets in Spain, France, and the United States.

Potential New LNG Exporters

At least seven additional countries are exploring their potential as LNG exporters.

Pacific Basin

• A project is proposed for exporting natural gas from Peru’s Camisea field to a terminal in Mexico.
• Several European and U.S. companies are proposing a project to pipe gas from Bolivia to either Peru or Chile on the Pacific Coast where it could be liquefied and shipped to a terminal on the West Coast of North America.

Middle East

• With the world’s second largest proved gas reserves, Iran has great potential to export gas to markets in Europe, Asia, and India by pipeline and as LNG. The Iranian government is considering at least four projects, each of 390 to 490 Bcf (8 to 10 million tons) per year, to process reserves in the South Pars-North field in partnership with companies in Europe and Asia.
• An LNG project has been proposed in Yemen for more than a decade but to date has not made significant progress.

Atlantic Basin

• In Venezuela, an LNG project has been discussed since the early 1970s. Shell and Mitsubishi have signed preliminary agreements to develop a 229-Bcf-per-year (4.7-million-tpy) project called Marisal Sucre based on offshore reserves. Discus­sions have been held with neighboring Trinidad and Tobago to bring Venezuelan gas to their Atlantic LNG plant for processing until a Venezuelan LNG plant can be built.
• In Angola, ChevronTexaco, ExxonMobil, BP, Total, and Sonangol are proposing to build a plant based on offshore associated gas for export to North American and European markets. The plant would initially have a single 195-Bcf-per-year (4.0-million-tpy) train with the option for development of additional trains later.
• Equatorial Guinea is looking to export LNG from its offshore Alba field. In May 2003, U.S.-based firm Marathon Oil signed a 17-year draft agreement to supply British Gas with 166 Bcf (3.4 million tons) per year of LNG to be delivered to the Lake Charles regasification facility in the United States. The project is currently undergoing advanced engineering feasibility studies, and a final investment decision is due in the first quarter of 2004.