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By EPN Staff

Two new liquified natural gas export terminals opened on the Gulf Coast in December, and three more are under construction, paving the way for a potential surge in LNG exports – unless a trade war with China unfolds.

Plaquemines LNG, about 20 miles south of New Orleans, represents a particular milestone: It’s the second U.S. facility to use new technology with a shorter construction timeline.

The other new facility that opened in December is Corpus Christi Stage 3, an expansion of an existing terminal in Texas.

The three other U.S. LNG export projects under construction are in Texas and Louisiana, but the 15% tariffs China announced this month on U.S. LNG threatens to slow other planned projects that haven’t broken ground.

Why it matters

The United States is the world’s largest LNG exporter following a massive ramp-up over the last four years. China is a major buyer, taking nearly 6% of U.S. exports last year, according to a recent Reuters report.

Chinese state-owned companies have signed deals to import higher volumes in the coming years, Reuters said, which has helped drive U.S. construction plans.

While President Joe Biden’s administration placed a moratorium on new LNG export permits, President Donald Trump lifted that when he took office in January. Trump’s new China tariffs triggered China’s LNG tariff.

Eight LNG export terminals operate in the U.S., three under construction and almost 20 more at various stages of development.

What's next?

The EIA said at the end of last year, before the new tariffs, that North America’s total LNG export capacity was on pace to more than double by 2028, with projects under construction in the United States, Canada and Mexico.

Most of that growth would be in the United States, the administration said. Most of the existing facilities are on the Gulf Coast in Texas and Louisiana, though there’s a facility at Elba Island near Savannah, Georgia, and one at Cove Point, Maryland.

LNG exports play a major economic role in the U.S., with a recent S&P Global research study showing the industry’s projected growth could add 500,000 jobs per year and boost the economy by $1.3 trillion through 2040. A PwC study commissioned by the National Association of Manufacturers also calculated strong economic benefits from the sector.

More detail

The new Plaquemines LNG project is the second U.S. facility to rely on mid-scale liquefaction technology, which allows projects to be built faster.

Calcasieu Pass LNG, the first, was the fastest built LNG export project in the United States, according to the EIA.

Both projects are owned by Venture Global, one of the world’s largest LNG companies. It says it’s planning to invest $50 billion in U.S. energy projects.

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