Natural gas production falls in 2016, but Texas project could boost LNG exports
by April 25, 2017 12:15 pm 174 views
U.S. production of marketed natural gas fell to 77 billion cubic feet per day in 2016, marking the first annual decline since 2005, according to the U.S. Energy Information Administration. The record high was 79 billion cubic feet per day in 2015.
Marketed production in Texas, which produces the most of any state, fell by 2.5 billion cubic feet per day, while Ohio and Pennsylvania each increased production by 1.2 billion cubic feet per day. “Marketed natural gas production excludes natural gas used for repressuring the well, vented and flared gas, and any nonhydrocarbon gases,” according to the EIA.
In 2017, domestic production of dry natural gas is expected to rise to an average of 73.1 billion cubic feet per day, the second highest average on record, according to the EIA. Dry natural gas is marketed natural gas minus the natural gas plant liquids.
Also in 2017, the Henry Hub price of natural gas should increase to $3.10 per million British thermal units, from $2.51 per million Btu in 2016, according to the EIA. “These price increases reflect the expectation of increased natural gas consumption, increased exports, and lower average inventory levels.”
On Tuesday (April 25), the U.S. Department of Energy agreed to allow Golden Pass Products to export domestically-produced liquefied natural gas to countries that do not have free trade agreements with the United States. The company will be allowed to export up to 2.21 billion cubic feet per day of natural gas from the Golden Pass Terminal near Sabine Pass in Jefferson County, Texas.
The construction of the export facility at Golden Pass is expected to provide for 45,000 direct and indirect jobs over five years, according to the DOE. Over the next 25 years, it would provide for 3,800 direct and indirect jobs and up to $2.4 billion in federal tax revenue and $1.2 billion in state tax revenue.
The DOE has authorized a total of 19.2 billion cubic feet per day in natural gas exports from planned facilities in Texas, Louisiana, Florida, Georgia and Maryland to countries without free trade agreements.