Forget Latin America, Asia Is the Biggest U.S. LNG Buyer Now

Bloomberg | 1/4/17

Asia’s finally becoming a prime destination for U.S. shale gas cargoes.

At least 10 of the 12 tankers bearing liquefied natural gas that left Cheniere Energy Inc.’s Sabine Pass terminal in Louisiana in December are headed for Asian countries, shipping data compiled by Bloomberg show. The December tally surpasses November’s record of 10 departures. Sabine Pass is the only terminal shipping U.S. shale gas overseas.

The departures include the Seishu Maru, which left Sabine Pass on Dec. 22 for China, and Stena Clear Sky, which shipped out on Dec. 10 for Japan. That’s a shift away from Latin America since exports began in February.

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U.S. set to double LNG shipments

E&E Energy Wire | 10/14/16

Cheniere Energy Inc. has received approval from regulators to double the volume of U.S.-produced liquefied natural gas exports from its Sabine Pass terminal in Louisiana.

Cheniere will start loading tankers with LNG from the terminal’s new plant, known as Train 2. The company shipped out its first cargo from the Lower 48 states in February, making it the nation’s first and only exporter of shale gas.

Analysts say the additional volume of U.S. LNG comes at a testing time for the global gas market, which has been reeling from oversupply and weakened demand.

“There will be big questions about where all of this gas is going to go and what it’s going to do to European gas prices and power prices, in Asia as well,” said Ted Michael, an LNG analyst with Genscape Inc.

The company plans to bring a third plant online next year and to commission a fourth.

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America’s About to Double the Shale Gas It Sends Overseas

Bloomberg | Naureen Malik | 10/13/16

The U.S. is set to double the volume of shale natural gas it’s sending abroad.

Cheniere Energy Inc., which became the nation’s first and only exporter of shale gas in February, was cleared by U.S. regulators on Wednesday to start loading tankers with liquefied natural gas from a second plant at its landmark Sabine Pass terminal in Louisiana.

The additional volumes of U.S. LNG will come at a testing time for the global market, which is reeling from a worldwide glut that’s set to worsen through 2020 as demand from key Asian customers slows. Still, the first exports from the lower 48 states have helped whittle down a U.S. surplus of the power-plant fuel and put Cheniere on the road to posting its debut profit.

Full story here.