US must capitalize on LNG export markets - ExxonMobil

The US must capitalize on its growing LNG export markets, such as Mexico, and consolidate its role as a global leader in energy production, according to the president of oil firm ExxonMobil.

"LNG exports can provide the spur to further increase America's natural gas production, providing all the attendant benefits that would generate," ExxonMobil's president Rob Franklin said.

But legal and regulatory hurdles need to be overcome to maximize LNG export potential, Franklin said during a speech at the Johns Hopkins School of Advanced International Studies in Washington DC, according to a company statement.

Franklin said that the export of LNG should be treated no differently from other exports, such as agricultural goods, automobiles and computer products.

"If we are serious about having a US LNG industry and capturing the tremendous opportunities in front of us, then we need to ensure that the case of LNG exports doesn't become just another casualty of bureaucracy."

US natural gas exports are projected to reach 158Bm3/y by 2040, although growth will be steeper before 2030, when LNG exports reach their peak of 96.3Bm3/y and plateau, according to the EIA's Annual Energy Outlook 2015.

Net natural gas pipeline exports to Mexico will hit 85.0Bm3/y in 2040, the report says. Although Mexico's gas production is expected to increase over the period, it is unlikely to keep pace with the country's rising demand for the fuel for power generation.

Mexico has undertaken a natural gas pipeline construction drive and plans to build 22 pipelines over the next 15 years in a move to increase supply to the country's industries and convert power generation from oil-fired to natural gas use.

Mexico's state utility CFE said in March that by 2017 it plans to reduce oil consumption for power generation by 90% from 2012 levels.

The country was also the largest offtaker of LNG from Peru during the first quarter of this year, receiving seven shipments totaling 1.4Mm3, according to Perupetro.

Global LNG demand is expected to triple between 2010 and 2040, according to ExxonMobil.