Freeport LNG terminal on Quintana Island, about 70 miles south of Houston, Texas, is one of 13 proposed LNG export terminals submitted to the U.S. Federal Energy Regulatory Commission for approval. Photo: Freeport LNG
BRUSSELS, Nov 12 (Reuters) – The United States is likely to export 10-15 billion cubic meters (bcm) of liquefied natural gas (LNG) per year to Europe from 2020, although it will ship much more to Asian markets, a report by Wood Mackenzie showed.
The discovery of vast amounts of shale gas has transformed the United States from a gas importer into a potential exporter, with its first shipments of super-cooled gas expected from the middle of this decade.
The lion’s share of the new U.S. exports are likely to go to Asia to take advantage of higher prices, the report said. LNG currently trades above $17 per million British thermal units (mmBtu) in Asia, compared with around $10.50 per mmBtu in Europe.
Wood Mackenzie said most European utility gas buyers see their future supply prospects as adequate already due to forecasts for weak demand growth and to the likelihood of additional gas supplies via pipelines.
A number of global companies with a large LNG portfolio and a presence in Europe are nevertheless likely to ship U.S. LNG to European markets to offload spare volumes, Wood Mackenzie said.
“We believe Europe will receive significant volumes of U.S. LNG, over 10 mmtpa post-2020. However, most of this will likely be the result of global LNG dynamics, and flows will be volatile in nature,” said Massimo Di Odoardo, Wood Mackenzie’s principal analyst for European gas research.
Europe-based companies such as Centrica and GDF Suez have already signed deals to buy U.S. LNG.
Wood Mackenzie expected spare U.S. LNG cargoes to head to more liquid European markets, such as the Netherlands and Britain, when high market prices offer opportunities. (Reporting by Karolin Schaps; editing by Jane Baird)
By Yimou Lee TAIPEI, March 7 (Reuters) – China has stepped up grey-zone warfare against Taiwan, aiming to make the areas around the democratic island “saturated” with balloons, drones and civilian boats,...
Austal USA has kicked off plans to construct a new manufacturing facility, marking a significant expansion of its shipyard capacity in Mobile, Alabama in support of U.S. Navy and Coast...
Oldendorff and Norsepower have announced an agreement to install three Norsepower Rotor Sails™ on board a modern bulk carrier to reduce its emissions. The vessel, Dietrich Oldendorff, will be equipped...
February 5, 2024
Total Views: 849
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.