Unlocking LNG potential: The critical need for increased natural gas production and transportation

 

As the global drive for liquefied natural gas (LNG) continues to grow, added focus is increasingly turning to the foundational element that makes it all possible: natural gas production and transportation. While much of the conversation around LNG revolves around international trade, the real challenge that will limit production needs lies in the natural gas infrastructure needed to get it to the ports. Without a significant increase in the development of added delivery paths, the industry risks falling short of its potential to provide cleaner, reliable energy around the world.

Liquefied natural gas has gained traction as a lower-carbon source of energy, and the demand for LNG has risen sharply across Asia and Europe. Long-term forecasts suggest that this trend will continue for decades. The scale at which we can meet this demand depends primarily on our capacity to extract, process, and transport natural gas in an effective manner.

Nowhere is this more critical, and more promising, than along the U.S. Gulf Coast, particularly in Louisiana and Texas, where the vast majority of current LNG facilities are located. This region is at the core of the U.S. LNG industry. But to meet future demand, the Gulf Coast, along with developing regions like the U.S. Northwest, must scale–not just for exports, but in the responsible and efficient collection of natural gas that feeds those terminals.

Production is not just about drilling more wells. It’s about optimizing the infrastructure that brings it to the required locations to be able to transform the gas for use.

Infrastructure and technology: Aligning expert services with the world’s energy needs

Providing natural gas energy to locations around the world requires targeted investments in infrastructure. Pipelines, processing plants, and storage facilities must be expanded to manage increased volumes efficiently and safely.

“When a client comes to us with a conceptual pipeline project, our team is able to provide the expert insight needed to determine the best options for success and provide valuable insight into the expected cost and schedule constraints,” said Gil Henry, Vice President of Oil & Gas engineering at Atwell.  “Our team can then assist with all phases of the project of the lifecycle from the preliminary stage (pre-FEED/FEED) process to detailed engineering design for the project to construction support. In our case, we are able to support clients as they work through multiple facets of the project considerations with in-house land and right-of-way, environmental, survey, full-discipline engineering, and design support for both pipelines and facilities, with a deep team knowledge of the region and terrain.”

Building to meet LNG growth demands

It’s not enough to build LNG terminals and sign export contracts. The LNG supply chain begins with natural gas. Without reliable upstream production and pipeline transportation, the entire LNG ecosystem becomes vulnerable to bottlenecks, price volatility, and emissions challenges.

When thinking about the future of natural gas, there are expansion efforts already underway from the central Rockies going west, in addition to key production from the Gulf Coast. Because of the rising demand and interest, the focus on adding new pipelines and expanding existing pipelines is expected to continue for the foreseeable future.

According to the U.S. Energy Information Administration, natural gas pipelines completed in 2024 increased takeaway capacity by approximately 6.5 billion cubic feet per day (Bcf/d), from the major U.S. natural gas producing regions. Five pipeline projects completed last year in Texas and Louisiana increased capacity to deliver natural gas to liquefied natural gas export terminals by approximately 8.5 Bcf/d.

“With the continued demand and growth of LNG, having the right team will be an essential part of the mix,” stated Henry. “Right now, there is still a bit of uncertainty in the development process and permitting as regulations are evolving and changing. Having a scalable, nimble team that provides the level of counsel that Atwell offers in one organization is a significant benefit for our clients and future developers.”