LNG Expansion Halted by Power Generation Bottlenecks
The liquefied natural gas (LNG) industry in North America is experiencing one of its largest expansion cycles, with export capacity expected to double from 11.4 Billion Cubic Feet per day (Bcf/d) or 88 Million Tonnes per annum (MTPA) in 2023 to 24.4 Bcf/d or 190 MTPA by 2028.
LNG facilities require a significant amount of electricity for liquefaction, compression, and supporting infrastructure, making power generation a crucial aspect of project development.
However, securing power has become increasingly challenging due to rising demand across multiple sectors, including hyperscale data centers, advanced manufacturing, and other industries.
The International Energy Agency predicts that global data center electricity demand will more than double by 2030, exacerbating the competition for resources such as generation equipment, transformers, engineering expertise, and grid capacity.