Iran Conflict Drives New Wave of North American LNG Capacity

A tight global natural gas market is expected to sustain commercial momentum for new North American liquefied natural gas (LNG) capacity, according to Rapidan Energy. The market has been driven by lingering conflict in Iran, which has led to a shortage of natural gas supply.

As a result, 20-30 million tonnes per year (Mt/y) of new LNG capacity is expected to be brought online in North America. Brownfields, or existing infrastructure being repurposed for LNG production, are likely to lead the way in this development.

The contracting process is also expected to rise as companies move ahead with plans to develop new LNG capacity. This increase in activity will help meet growing demand for natural gas globally.