LNG Success | Russell T. Rudy Energy LLC
During the shale revolution operators were finding gas faster than traditional domestic markets could absorb it. Consequently, some investors saw LNG (Liquefied Natural Gas) exports as a lucrative opportunity. Liquefaction, transportation and regasification facilities are capital intensive and require long lead times for construction. While a number of projects are currently underway in the U. S., Cheniere Energy’s Sabine Pass, Louisiana, plant was the first one to begin operating.
“World Oil” reports that since start-up a year ago both throughput and prices have increased. Two production trains are already operational, a third is in the process of starting up, with a fourth scheduled for later this year. In January and February fifteen tankers departed Sabine Pass, the most since operations began. Last year’s highest price received was $6.21 per Million British Thermal Units (MMBTU). However, by January of this year, cargoes destined for Mexico, Japan and Jordan were getting $7.52 per MMBTU, the best price yet.
So far the Sabine Pass facility has exported LNG to more than a dozen countries, some as far away as China, and others as close as Mexico. If all continues as planned, the U. S. will become a net exporter of LNG by next year.
Jason Feer with ship broker Poten & Partners, observed that Sabine Pass “ramped up faster than expected, so it seems like a pretty successful launch into commercial operation. The prices have been fairly strong. For Cheniere Marketing that’s been good to see.”
The international LNG market is highly competitive with a number of established, as well as emerging, players. However, it looks like the U. S. in general, and Cheniere Energy in particular, is off to a good start.
To read the article in its entirety, please go to http://www.worldoil.com/news/2017/3/20/americas-shale-gas-selling-at-record-prices-to-overseas-buyers .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
