Could a New LNG Export Terminal Be Coming to the Marcellus/Utica's Backyard? RBN Energy -- October 24, 2022

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RBN Energy: could a new LNG export terminal be coming to the Marcellus / Utica's backyard? Archived.

Without a doubt, the two biggest changes to U.S. natural gas markets in the last 15 years have been the Shale Revolution and the development of LNG exports. 

These completely upended the way gas flowed in this country, with the Northeast now home to the largest gas-producing basin and the Gulf Coast — including its fleet of LNG export terminals — now the U.S.’s largest demand center. Production growth in the Marcellus/Utica has stalled, however, largely due to the regulatory and legal challenges associated with building new pipeline takeaway capacity. One possible fix would be a new East Coast LNG terminal, which in addition to having easy access to cheap, almost-local gas would also be close to gas-hungry European markets. But just how likely is such a project? In today’s RBN blog, we discuss the advantages and hurdles of developing LNG export capacity on the East Coast.

New terminals?

New Fortress Energy had been planning a floating LNG project on the New Jersey side of the Delaware River but it put that project on hold because of local opposition.

For now, all eyes are on Penn American Energy, which has been developing Penn LNG, a proposed 7.2-MMtpa facility that could be built at one of four locations along the Delaware River near Philadelphia.

Penn American is in negotiations with potential offtakers, but nothing firm has been announced.

Many East Coast projects face much stronger opposition than those on the Gulf Coast, which has ended the hopes of numerous pipeline projects in and out of the area. Don’t forget that it took an intervention from arguably the most powerful member of the U.S. Senate, Joe Manchin of West Virginia, to revive the hopes of Mountain Valley Pipeline, the last major gas pipeline project still fighting its way through the development process — and MVP is still not a done deal. The project, which is more than 95% finished but still awaiting a couple of final approvals, is not expected online before 2028.