The global energy sector is extremely interconnected and decisions in one country can have surprising impacts elsewhere. At first sight, changes in local environmental permits in New England, USA, would seem to have no significance to Trinidad & Tobago, but there may be unexpected impacts.
Despite the USA being the world's largest LNG exporter, the world's biggest economy still imported 0.3 billion cubic meters (bcm) of LNG from Trinidad & Tobago in 2023. This LNG is transported from the Atlantic terminal in Point Fortin to the Everett Marine import terminal in Boston, Massachusetts during periods of the year when demand for power peaks in New England, typically the coldest winter months for heating and sometimes in hot summers for air conditioning.
When the Atlantic facility was first constructed over two decades ago, it was primarily designed to export LNG into the then gas-hungry United States, with LNG import terminals along the US Gulf Coast and New England and many others planned. All that changed with the development of fracking technology and the sudden boom in shale gas production. US gas production rose from 518 bcm of natural gas in 2000 to 1,035 bcm in 2023 and the US went from being a net importer of natural gas to being a major exporter.
Despite this national change, New England has continued to need imported LNG to meet demand in peak periods. This is because local environmental opposition at the state level in New York and surrounding States has prevented the construction of gas transmission pipelines to bring gas from producing areas like Pennsylvania to consumers in the northeast. LNG export facilities on the US Gulf coast are also unable to ship LNG to Boston because US legislation (the Jones Act) means that only US-flagged LNG carriers can move cargoes between US ports (most carriers are flagged in countries like Japan, Liberia, Panama, Bermuda and Malaysia); so Trinidad, as the next nearest source of LNG, has continued to supply the US, despite the shale gas revolution.
This may now be about to change. Recent reports from the Wall Street Journal and Bloomberg suggest that there are moves to overcome the environmental opposition to new natural gas transmission pipelines linking consumers in New England with the producers further south and west.
Furthermore, the greenlighting of the massive Empire offshore wind project located about 15 miles south of Long Island and spanning 80,000 acres, notwithstanding President Trump's well documented opposition to wind turbines, will supply and additional 810 MW of clean electricity to the northeast.
Exports to the USA only account for 3% of Trinidad's total LNG exports and there is a lot of demand for LNG in key markets, especially in Europe and Asia. Nevertheless, the impact of these local changes in the USA shows the interconnection of the global energy industry and how decisions elsewhere can impact on Trinidad & Tobago.