Exporting LNG Could Bring US Gas Prices on Par with World Pricing

This is a article from Fuel Fix reporting the first customer for the Sabine Pass terminal. This would make the US an energy exporter but it will also add new customers to the demand curve for natural gas. This could cause the US pricing to move closer to the world pricing. The price of natural gas fired generation electricity pricing may impacted.

LNG export terminal gets first major customer
by Tom Fowler in Commodity Trading, LNG, Natural Gas, Newsletter, North America
Cheniere Energy Partners’ LNG import terminal on the Louisiana side of Sabine Pass

The U.S. is one step closer to being an energy exporter once again.

Houston-based Cheniere Energy Partners said it has signed its first long-term customer to buy liquified natural gas for export from its Sabine Pass terminal on the Texas/Louisiana border.

The LNG sale and purchase agreement with a division of U.K.-based BG Group for 3.5 million tonnes per year of LNG over 20 years. Put another way, that’s 178 Bcf per year, or about 0.5 Bcf per day. …

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.