France Eyes U.S. LNG
Taking Advantage of U.S. LNG Exports
At the end of this year, Cheniere Energy is set to have natural gas cooling into a liquid at its Sabine Pass terminal in Louisiana.
And by January, 2016, that supply is slated to start going out into the world.
You can bank on that happening soon...
Several contracts have already been set, as U.S. supply is much anticipated by some of the country's European allies.
One of those is France, specifically the country's Engie SA. Under the contract with Engie, Cheniere will send around 12 shipments of LNG per year for the next five years. These will come from the company's Corpus Christi, Texas terminal.
The supplies will be available for regasification either at Engie's Montoir-de-Bretagne terminal, or at alternate terminals in Europe.
The prices for this LNG will be set in 2018 and be based on northern European prices. This is good for Cheniere, since natural gas prices in Europe are higher than in the U.S. — meaning a good chance for profit.
And Cheniere has yet another French contract in line with Electricite de France SA for as many as 50 LNG shipments between this January and the end of 2018.
In fact, even more will be going to France's EDF Dunkirk terminal.
France will certainly just be the first of many overseas customers for U.S. LNG.
Several European countries are dependent on Russia for their main source of natural gas. The historical and current political volatility in the country makes business transactions, especially energy-related ones, volatile as well.
Additionally, the only other major sources are Norway, Qatar, and Algeria, but four suppliers does not a diverse energy portfolio make.
“Importing U.S. LNG will participate to strengthen the security of supply of Europe,” says Engie executive vice president of global gas and LNG Pierre Chareyre.
Volatile times or not, it will be a boon for many European countries to have new option for natural gas supply.
The U.S. shale boom brought on a glut of natural gas, and the time has finally come for all of that excess to make its way out into the world, not only to gain the U.S. allies, but business as well.
To continue reading...
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
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