Metanowiec LNG facility in Poland

Liquified Natural Gas

RMP started tracking global LNG in 2011 when FERC approved Cheniere to export LNG from Sabine Pass. We wrote about the details of this significant event in American energy history in 2015 just before Cheniere’s first liquefaction train went online. RMP and our volunteers had been studying oil & gas and learning about this industry in earnest since 2008 when HVHF came to Michigan. The LNG export concept in America was part of the HVHF boom that completely changed America’s deficit position in natgas to a surplus position in as little as two decades. In 2005, the USA was building regasification LNG facilities anticipating natgas shortages. The horiztonal drilling and high volume hydraulic fracturing that RMP was reporting on since 2008, was fundamentally changing America’s position in energy production.

Majors like Chesapeake and Haliburton were tapping into large natural gas reservoirs like the Permian Basin in Texas, the Marcellus Shale in the Appalachian Basin, the Bakken Shale in North Dakota & Montana, and the Montney & Durvernay formations in Canada. High Volume Hydraulic fracturing well completion techniques and horizontal drilling perfected by companies like Halliburton, Schlumberger, Baker Hughes, EOG/Enron, Chesapeake, Range Reources, Anadarko, and more changed the world’s oil & gas industry from 2005 to 2015. In as little as a decade, the USA was awash in more natural gas than it could distribute. RMP made this exclusive global LNG facility map in 2015 showing every LNG facility in the world. RMP launched our LNG map just before Cheniere sent their 1st cargo which makes RMP’s global map about 10 years old.

The boom in high-volume hydraulic fracturing (HVHF) across the Permian Basin, the Marcellus Shale, and in Canada profoundly transformed the North American natural gas market. The timeline of natural gas pipeline and liquefied natural gas (LNG) facility development in North America closely mirrors this production surge, as infrastructure had to be expanded rapidly to transport and export the newfound surplus. Here’s a recap of the LNG timeline as it relates to North America’s enormous boom in natgas and an overview of how these developments unfolded from 2005 to the present:

2000-2005: Prelude to the Boom

  • HVHF Development: Before the widespread adoption of HVHF, North America’s natural gas production was relatively stable, with conventional drilling techniques providing steady, but unremarkable, outputs. However, the early 2000s saw advances in horizontal drilling and HVHF by players like Halliburton, which allowed producers to unlock vast quantities of natural gas trapped in shale formations.
  • Initial Infrastructure: At this time, the infrastructure for natural gas distribution—mainly pipelines—was designed to handle the modest production levels from conventional gas fields. The infrastructure was concentrated in areas with a long history of gas production, like the Gulf Coast and Appalachia.

2005-2010: The (HVHF) Fracturing Boom Begins

  • Shale Plays and Surplus: The Marcellus Shale in the Appalachian Basin, the Permian Basin in Texas, and the Montney and Duvernay formations in Canada emerged as major sources of natural gas. By 2008, production from the Marcellus Shale, in particular, surged, quickly leading to a surplus of natural gas in the market. 2008 is when Canada’s Encana and Houston based Halliburton started fracking Kalkaska county Michigan. RMP was born as a water watchdog non-profit organization as soon as Canada’s Encana was using over 23 million gallons of Michigan freshwater to frack the Collingwood formation.
  • Price Decline: The sudden increase in supply led to a significant drop in natural gas prices in North America. By 2009, the U.S. had become the world’s largest natural gas producer, but the existing infrastructure struggled to handle the volumes, leading to bottlenecks and price differentials between regions.
  • Pipeline Investment Begins: The oil & gas industry recognized the need for expanded pipeline infrastructure to transport gas from these new production hubs to demand centers and export points. This period saw the beginning of several pipeline projects, like the Rockies Express Pipeline (REX) and expansions in the Northeast, to alleviate regional bottlenecks.

2010-2015: Infrastructure Expansion and LNG Export Development

  • Pipeline Expansion: As HVHF continued to unlock more natural gas, pipeline companies began investing heavily in new infrastructure. Key projects included:
    • Northeast: Expansion of pipelines like the Constitution Pipeline and the Atlantic Sunrise Project to transport Marcellus Shale gas to East Coast markets.
    • Gulf Coast: Pipelines like the Gulf Coast Express were developed to move Permian Basin gas to the Gulf Coast, where demand for exports and petrochemical feedstock was rising.
  • LNG Export Terminals: With the U.S. producing more gas than it could consume domestically, attention turned to global markets. Cheniere Energy recognized the opportunity early and began transforming its Sabine Pass terminal, initially built as an LNG import facility, into the first LNG export terminal in the U.S. Click here to read RMP’s 2015 intro into LNG in this story about Cheniere.
    • 2011 – FERC authorizes Cheniere to export LNG from Sabine Pass
    • 2012 – Construction begins on the liquefaction facilities at Sabine Pass
    • 2015 – RMP creates (exclusive) GIS database & map of all LNG facilities across the world
    • 2016 – First LNG export cargo from the contiguous U.S. departed from Sabine Pass, marking a major milestone in the U.S. becoming a global LNG exporter.

2015-2020: Continued Infrastructure Buildout and Export Growth

  • Permian Basin Production Surge: The Permian Basin’s natural gas production soared, driven by associated gas from oil drilling. This created a need for even more pipeline capacity to the Gulf Coast, leading to projects like the Permian Highway Pipeline and Whistler Pipeline.
  • LNG Terminals Proliferation: Following the success of Sabine Pass, other LNG export terminals were developed, including:
    • Cameron LNG in Louisiana.
    • Corpus Christi LNG in Texas (also by Cheniere).
    • Freeport LNG in Texas.
  • Canada’s LNG Ambitions: In Canada, the development of LNG export facilities also gained momentum, particularly on the West Coast, with projects like LNG Canada in Kitimat, BC, moving forward to take advantage of Asian markets.

2020-Present: The Maturation of the Market

  • Infrastructure Realignment: As production has matured, the focus has shifted to optimizing existing infrastructure, with projects like the expansion of the REX pipeline for reverse flow and enhancing connectivity between different pipeline networks.
  • LNG as a Global Player: The U.S. has solidified its position as a top LNG exporter, with several more terminals either under construction or planned. This includes the expansion of existing facilities and new projects like the Golden Pass LNG terminal in Texas.
  • Environmental Considerations: The rapid expansion of natural gas infrastructure has also led to increased scrutiny from environmental groups and regulatory bodies, influencing the pace and nature of new developments.

Summary of Key Developments:

  1. 2005-2010: HVHF unlocks vast natural gas reserves, leading to a surplus.
  2. 2010-2015: Major pipeline and LNG export terminal investments begin, with Cheniere’s Sabine Pass being a critical first mover in LNG exports.
  3. 2015-2020: Continued buildout of pipelines and LNG terminals to handle the increasing supply, especially from the Permian Basin.
  4. 2020-Present: The U.S. becomes a global leader in LNG exports, with a mature and optimized infrastructure network supporting the industry.

This timeline illustrates the rapid and transformative impact of HVHF on North America’s natural gas infrastructure, turning the continent from a potential natural gas importer to a key global exporter in just over a decade.

Check out RMP’s:

  1. Map of all LNG facilities across the globe.
  2. RMP’s homepage for our LNG map where articles, videos, links, and stats about the map are easily found. RMP writes about different LNG plants, the industry at large, and tracks shipping information through energy.gov’s natural gas imports & exports page.