USA starts exporting liquefied natural gas

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On Tuesday January 12, LNG tanker “Energy Atlantic” arrives to the United States at Sabine Pass terminal in Louisiana, to export the country’s liquefied natural gas (LNG) at the very first time, reports Financial Times. The terminal is owned by Cheniere Energy company, and most of the first batch of gas will be purchased by the British BG Group.

Starting the export of LNG from the United States may increase competition in the industry, and discomfit competitors to build terminals on the east coast of Africa, west coast of Canada, and in Russia, notes FT. It is expected that by the end of the decade the US will become the third largest LNG exporter after Qatar and Australia. Nevertheless, beginning of US exports comes amid a decline in gas prices, which are often linked to oil prices. Therefore, the export of LNG from the US to Japan, South Korea, or Europe no longer looks as commercially attractive as it was a few years ago.

Source: Vedomisti

Image: Wmeinhart (under CC BY-SA 3.0)