With demand for U.S. LNG continuing to ramp up globally, exporters are trying to get out of infrastructure problems for the next LNG wave, according to an 85-page study by BTU titled “Getting to the Gulf. Can We Supply Wave 2 LNG?”
But a concern addressed in the BTU report is that the midstream sector may over-correct the first wave by overbuilding to deal with the anticipated LNG export demands, particularly along the Gulf Coast.
“We have an extreme propensity in U.S. markets to overbuild infrastructure,” BTU analyst Anthony Scott said during a conference call to discuss the study on Sept. 4. “If you look at LNG imports as an example many of the LNG export facilities exist today because they were LNG import facilities that were ultimately never utilized.”