Long before energy security became a mainstream concern in the United States and Europe, Kelcy Warren was building the infrastructure to support it. The head of Energy Transfer understood that America’s growing production of natural gas needed a pathway to global markets and he began creating one years ahead of the demand.
Anticipating the Export Era
In 2014, Warren acquired Lake Charles, a Gulf Coast LNG terminal that had originally been built for imports. At the time, the United States was still relying on foreign natural gas deliveries. Warren saw that the shale boom was about to reverse that equation entirely. He re-engineered the terminal for export service, positioning Energy Transfer to capitalize on what would become a major shift in global energy trade.
That bet proved accurate. The U.S. now exports approximately 13 billion cubic feet per day of LNG, and that figure is projected to climb toward 30 billion cubic feet in the coming years. Energy Transfer has also become the largest exporter of ethane, a natural gas byproduct that was largely seen as a waste stream before the shale era. The company ships ethane, LPG, and butane to 93 countries markets Warren noted were “virtually not existent pre-shale.” Russia’s conflict with Ukraine accelerated demand from European nations seeking alternatives to Russian supply. Warren recognized that energy security was becoming a geopolitical issue, not just a commercial one.
The Commitment to Producers
Kelcy Warren describes the relationship between midstream operators and upstream producers as fundamentally interdependent. “From my industry, which moves on spreads and volumes, I have to know how I can commit to the driller in West Texas, that I have a place to handle their supply,” he said. That commitment requires infrastructure built ahead of need a philosophy that has defined Energy Transfer’s approach under Warren’s leadership. Kelcy Warren focus on building export capacity has helped ensure that America’s producers have access to global buyers, stabilizing domestic markets in the process. Check out this page for more information.
Find more information about Kelcy Warren on https://www.energytransfer.com/leadership/