Exhibition & Conference

13-16 September 2021

Singapore EXPO, Singapore

Strategic Programme

Corey Grindal

Senior Vice President, Gas Supply

Cheniere Energy, Inc.

11:30 - 11:55

Thursday, 19 September 2019

S2.8 Permian Basin Production and the Development of Gulf Coast Liquefaction

Over the past three years Cheniere Energy has grown to the largest natural gas consumer in the United States, building a world-class procurement platform while successfully commissioning six liquefaction trains in various market and operational environments. With this experience, Cheniere is able to provide a unique perspective on the development of the US natural gas market and best practices for North American gas supply procurement for LNG exports.

Cheniere’s asset portfolio places the company at the focal point of the forward development of the US gas market, which will be characterized by a growing prominence of LNG exports and natural gas production associated with oil extraction. In particular the latter has led to increasing interest in the role that the Permian Basin will play in supplying gas to LNG projects in coming years. With its liquefaction terminal in Corpus Christi, Cheniere is positioned to benefit from growing Permian Basin gas production supported by oil economics, offering a market outlet to Permian producers.

This presentation will provide Cheniere’s perspective on the growth prospects for Gulf Coast US LNG exports, continued natural gas production growth from the Permian Basin, and the pipeline infrastructure development required to supply growing Gulf Coast demand.

Natural gas production associated with oil extraction will play a major role in forward US production growth, supported by a large resource base in the Permian Basin, which now houses more than half of the US oil rig fleet and has the potential to grow natural gas production by more than 5 Bcf/d over the next five years. This production, driven by oil rather than dry gas economics, is positioned to be the most advantaged source of supply available to meet Texas Gulf Coast demand growth. Cheniere is positioned to utilize this supply to support the commercialization of liquefaction capacity at Corpus Christi, offering producers an opportunity to benefit from the expansion of the global gas market and partner with a reliable counterparty prepared to consistently receive firm supply and manage its own variable feedgas needs.

A sizeable queue of Texas intrastate pipeline projects is prepared to link this growing production to export markets, supported by competitive production economics and construction costs. These projects are located in a state supportive of infrastructure development and unencumbered by the potential for major delays that have recently challenged major interstate pipeline projects.

Through an overview of these topics, this presentation will highlight the key drivers of the development of the Gulf Coast US natural gas market, with an emphasis on the interrelated nature of LNG export development, production growth, and pipeline development.